Chip maker ST-Ericsson faces shutdown as STMicro plans to quit JV
posted by Victor H. / Dec 10, 2012, 9:35 AM
STMicroelectronics on its part is looking to cut costs and better compete with higher-margin US and Asian rivals like Qualcomm and Texas Instruments.
Swedish Ericsson however also is not likely to be willing to single-handedly takeover the JV that registered an $841 million loss last year.
Analysts don’t write off the possibility of ST-Ericsson, a JV employing more than 5,000 people to get shut down completely and sold to the likes of Intel and Broadcom.
"I think it is going to be a complex deal including some reallocation of employees to Ericsson, and the sale of the wireless modem business to a competitor, and some layoffs," semiconductor analyst Jerome Ramel of Exane BNP Paribas said.
STMicro shares went up on the announcement which is seen to be good for its business.
Posts: 122; Member since: Aug 28, 2012
This can be a trouble to jolla.
posted on Dec 10, 2012, 10:16 AM 0
Posts: 192; Member since: Sep 22, 2012
I'm certain a version of the a9600 with integrated LTE was going to be the best chip next year overall. I hope Sony buy them out of this mess.
posted on Dec 10, 2012, 11:27 AM 1
Posts: 1256; Member since: Nov 12, 2012
i was actually looking forward for STericsson WP from nokia coz before nokia or STEricsson promise that they will bring a nova thor powered WP on the market... http://www.engadget.com/2011/1
to make it cheaper and cheap dual core!
posted on Dec 10, 2012, 6:18 PM 0
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