Ericsson and chip-maker in joint venture
Written on August 22, 2008
Swedish wireless equipment maker LM Ericsson AB and Switzerland-based chip-maker STMicroelectronics NV’s have unveiled plans to create a 50-50 joint venture in semiconductors and platforms for mobile applications.
The merger of Ericsson’s mobile platforms unit and ST’s (STM) ST-NXP Wireless division will have 8,000 employees and be headquartered in Geneva, Switzerland.
Governance will be balanced and pro-forma sales for 2007 are calculated at $3.6 billion.
The company will supply four of the industry’s top five handset manufacturers, they said, including Nokia (NOK), Samsung, Sony (SNE) Ericsson, LG and Sharp.
Ericsson (ERIC) Chief Executive Carl-Henric Svanberg told a conference call Wednesday that "this is a great day for us fast cash advance. What really makes a phone is what’s inside a phone."
Filed in: management.