Ericsson, STMicro close mobile merger deal

Ericsson and STMicroelectronics have completed a deal announced last year to combine their mobile chip operations.

Ericsson and STMicroelectronics have completed a deal announced last year to combine their mobile chip operations.

The transaction combines Ericsson Mobile Platforms with ST-NXP Wireless in a 50/50 joint venture and continues the consolidation of the mobile equipment industry. The venture begins its life as a supplier to four of the world's biggest handset makers, which together make about 80 percent of all mobile phones, the companies said.

The deal was announced last August, before business became even more challenging for handset makers. Earlier this month, Nokia reported a 19 percent drop in fourth-quarter sales, and on Tuesday Motorola posted a fourth-quarter loss of US$3.6 billion and a 50 percent drop in phone sales.

The joint venture brings together part of Ericsson, one of the world's largest communications technology companies, with a joint venture that STMicroelectronics had formed earlier with chipmaker NXP. Ericsson contributed $1.1 billion to the joint venture, and STMicroelectronics exercised an option to buy out NXP's portion of ST-NXP Wireless.

The new business has about 8,000 employees -- about 5,000 of them from STMicroelectronics -- and is based in Geneva. It will be led by President and CEO Alain Dutheil, who has been CEO of ST-NXP Wireless and chief operating officer of STMicroelectronics. Each partner will have four seats on the venture's board.

The partners said last year they wanted to create the venture to achieve greater scale. The new company will supply hardware, software and support to handset makers building devices for a wide range of networks, from 2G (second-generation) to LTE (Long-Term Evolution). In addition, ST-NXP is a supplier of TD-SCDMA (Time-Division Synchronous Code-Division Multiple Access), a Chinese 3G standard. The two companies bring in supplier relationships with customers including Nokia, Samsung Electronics, LG, Sharp and Sony Ericsson Mobile Communications, Ericsson's own handset joint venture.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags EricssonSTMicroelectronics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?