Ericsson and STMicroelectronics agreed to shut down their unprofitable ST-Ericsson chipset joint venture and split up its assets, a move that will lead to a net loss of 1,600 jobs.
Ericsson and STMicroelectronics have failed to attract offers for their loss-making semiconductor joint venture after a three-month search for buyers, according to a Bloomberg report, sparking renewed speculation that the venture may be coming to an end soon.
Ericsson and STMicroelectronics have tried and failed over the past three months to find a buyer for their struggling ST-Ericsson chipset joint venture, according to a Bloomberg report.
Ericsson is pushing further into the TV and media business with the acquisition of IT consultancy Devoteam's Telecom & Media operations in France. The move will see 400 French-based consultants with expertise in IP multimedia subsystems, delivery platforms and radio/TV networks join Ericsson by the second quarter.
Chipmaker ST-Ericsson is battling the contention that phones offering voice over LTE have battery life issues, saying such issues are restricted to first-generation LTE chipsets and devices running simultaneous voice and LTE (SVLTE) service during VoLTE calls.
Ericsson said it will take a $1.2 billion charge in the fourth quarter related to its money-losing chipset joint venture with STMicroelectronics, ST-Ericsson, as it explores future options for the company.
STMicroelectronics said it will sell off its stake in ST-Ericsson, the struggling chipset maker that STMicro jointly owns with Ericsson. STMicro said that as a result of strategic changes it is making it will exit its stake in the venture after a transition period, which is expected to end during the third quarter of 2013.
Broadcom will start providing sample LTE chipsets to customers next year, the company confirmed, indicating that it wants to catch up with industry leader and rival Qualcomm.
Ericsson and STMicroelectronics appointed JP Morgan to advise on the options they have for their loss-making semiconductor venture, ST-Ericsson.
ST-Ericsson said it would cut 1,700 jobs and transfer the development of its standalone applications processor business to one of its parent companies, STMicroelectronics, in a bid to change the