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 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 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.
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
ST-Ericsson will undergo a significant restructuring within the next two weeks as speculation increases that its new CEO is positioning the ailing company for a potential sale, according to a Reuters
ST-Ericsson will unveil a major revamp of its operations in the next two weeks, and could become a takeover target for other chipset makers, according to a Reuters article. The article, which cited
Chipset makers ST-Ericsson and Texas Instruments warned that their businesses could be impacted by declining sales of Nokia's ( NYSE:NOK ) legacy Symbian smartphones. ST-Ericsson, the venture between
LAS VEGAS--Ericsson ( NASDAQ:ERIC ) CEO Hans Vestberg said the company remains committed to ST-Ericsson, its joint venture with STMicroelectronics, despite having recently announced plans to shed its