NEW! Investment Companies Centre

Ericsson and STMicro form joint venture

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 20 Aug 2008

LONDON (ShareCast) - Swedish telecom gear group Ericsson and Switzerland-based chip-maker STMicroelectronics today unveiled plans to combine their wireless chip and software businesses to form a joint venture with pro-forma sales of $3.6bn per year.

The new Geneva-based company, which will employ 8,000 people, combines Ericsson’s mobile platforms unit and ST-NXP Wireless. Its customers will include Nokia, Samsung, Sony Ericsson, LG and Sharp.

Ericsson is to contribute $1.1bn to the joint venture, out of which $700m will be paid to STMicroelectronics.

"By combining the complementary strengths and product offerings of Ericsson and ST in platforms and semiconductors the joint venture is well positioned to become a world leader," said Carl-Henric Svanberg, president and chief executive of Ericsson.

"The industry continues to develop at a swift pace and customers see benefits from our broad offering. This partnership is a perfect fit and secures a complete offering, as well as the necessary scale for technology leadership," he added.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).