Ericsson and STMicroelectronics have formed a 50/50 joint venture that will combine Ericsson's mobile platform division with ST-NXP Wireless, the wireless semiconductor arm of STMicroelectronics. The JV will supply wireless chips and platforms to such major OEMs as Nokia, Samsung, Sony Ericsson, LG and Sharp.
On a conference call this morning with media and analysts Ericsson President and CEO Carl-Henric Svanberg said that the joint venture, which had pro-forma 2007 sales of $3.6 billion, will be a serious competitor to other wireless chip makers such as Qualcomm and Texas Instruments. The new firm will employ about 5,000 people from STM and 3,000 from Ericsson and will be headquartered in Geneva, Switzerland. Each company will appoint four directors to the board, Svanberg will be Chairman of the Board and ST President and CEO Carlo Bozotti will be the vice chairman.
- see this press release
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