Home
Telecom
Telecom News
STMicroelectronics to exit Ericsson joint venture

STMicroelectronics to exit Ericsson joint venture

By Associated Press | Updated: 5 April 2013 16:32 IST

Click Here to Add Gadgets360 As A Trusted Source

Europe's largest chipmaker, STMicroelectronics NV, says it plans to exit its money-losing joint venture ST-Ericsson, as it struggles to manage a downturn in global demand.

Swiss-based STMicroelectronics says it is negotiating "exit options" from ST-Ericsson, its joint venture with Swedish telecommunications company Ericsson. It says "this disengagement process has started, with the transition expected to end" during next year's third quarter.

The semiconductor manufacturer, based in Geneva, announced the plans as part of a new strategic plan Monday. A global economic downturn has hurt sales at companies that make semiconductors for phones and other devices.

President and CEO Carlo Bozotti said STMicroelectronics would "continue to support ST-Ericsson" as part of its supply chain and technology partner.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.