Mobile wireless biz sprouts from ST-Ericsson JV
The new company is designed for long-term stability, and is set on performing product research, design and development. It is also aimed to create cutting-edge mobile platforms and wireless semiconductors, according to an ST press release. The joint venture begins as a supplier to four of the top five handset manufacturers, who together represent about 80 percent of global handset shipments, and to other industry leaders.
Ericsson contributed $1.1 billion net to the joint venture, out of which $0.7 billion was paid to ST. Prior to the closing of the transaction, ST exercised its option to buyout NXP's 20 percent ownership stake of ST-NXP Wireless.
Alain Dutheil, presently CEO of ST-NXP Wireless and chief operating officer of ST, will lead the joint venture as president and CEO.
Each parent appoints four directors to the board with Carl-Henric Svanberg, president and CEO of Ericsson, as the chairman of the board; and Carlo Bozotti, president and CEO of STMicroelectronics, as the vice chairman.
Employing about 8,000 people—roughly 3,000 from Ericsson and approximately 5,000 from ST—the new wireless technologies company is headquartered in Geneva, Switzerland.
The new company will meet its customers at the Mobile World Congress in Barcelona Feb. 16-19.
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