STMicroelectronics to exit Ericsson joint venture

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.