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ST-Ericsson come to the end


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ST-Ericsson come to the end


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POSTER: computer news   ||   ST-ERICSSON COME TO THE END

DATE:2013-03-19

Four years ago, Ericsson and STMicroelectronics have formed a joint venture to develop platforms for mobile phones and smartphones - the company ST-Ericsson.  Major customer for chipsets ST-Ericsson was the Finnish Nokia.  This client, was very fragile.  Nokia business from last year disintegrated.  The company could not in time  catch the trend and lost much to Apple and Samsung.  As a result, the demand for  ST-Ericsson solutions dropped significantly. Finally, in December last year, the two parent companies - Ericsson and STMicroelectronics - talking about the possible termination of  JV.  

Fresh press release , Ericsson reinforces plans to curtail the work of ST-Ericsson.  Business, assets and personnel ST-Ericsson on the third quarter  this year will be split between Ericsson and STMicroelectronics.   Ericsson Company took off 1,800 of 4,450 staff  JV.  For a business, it will consolidate the development of cellular modems generation 2G, 3G and multi-mode 4G (LTE).  According to Ericsson, for modems is sufficient demand to make it with his experience could be one of the leading players in this market, and the small company will benefit from it a lot more benefits than most.

STMicroelectronics company would go part actual product ST-Ericsson, except for LTE-modem as the corresponding manufacturing and assembly facilities.  Part of the assets, however, will be liquidated.  To work in the joint venture of STMicroelectronics will move 950 employees, mainly in France and Italy.  Unemployed will remain 1,700 from ST-Ericsson.


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