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ST, Ericsson complete JV split

Posted: 06 Aug 2013     Print Version  Bookmark and Share

Keywords:Ericsson  STMicroelectronics  ST-Ericsson  LTE  4G 

Ericsson and STMicroelectronics have announced the closing of the transaction for the split up of their wireless chip joint venture ST-Ericsson.

Effective August 2, 2013, Ericsson has taken on the design, development and sales of the LTE multi-mode thin modem solutions, including 2G, 3G and 4G interoperability. In total, approximately 1,800 employees and contractors have joined Ericsson.

ST has taken on the existing ST-Ericsson products, other than LTE multi-mode thin modems, and the GNSS (Global Navigation Satellite System) connectivity solution sold to a third party, and related business as well as certain assembly and test facilities. In total, approximately 1,000 employees have joined STMicroelectronics.

"The close down of the remaining parts of ST-Ericsson has started and both parents are assuming equal funding of the wind-down activities," the companies said in a joint statement.

Georges Penalver, Executive Vice President, Chief Strategy Officer at ST said: "We have finalized the agreement fully on track to our plan, with minimised social impact and lower exit costs than anticipated. We welcome our new employees as we are adding strong competencies in the areas of embedded processing, RF, analogue and power technologies, as well as in software and complex system integration, to fuel growth in many of our product areas where we have significant business opportunities."

ST estimates that its total cash costs net of proceeds from beginning 2013 through the end of the joint venture will be in the range of approximately Rs.1,796.41 crore-Rs.2,095.81 crore ($300-$350 million).

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