Ericsson, ST Complete Breakup of Joint Venture
Ericsson and STMicroelectronics today announced the official breakup of the ST-Ericsson joint venture. Closing of the transaction follows on the initial announcement the companies made on March 18, 2013.
Effective August 2, 2013 Ericsson has taken on the design, development and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. According to a press release that division includes approximately 1,800 employees and contractors that will now be part of Ericsson.
STMicroelectronics has agreed to take on the existing ST-Ericsson products, other than LTE multimode thin modems, and the GNSS (Global Navigation Satellite System) connectivity solution, which was sold to a third party. Approximately 1,000 employees have joined STMicroelectronics.
The close down of the remaining parts of ST-Ericsson has started and both parents are assuming equal funding of the wind-down activities.
Ericsson says the LTE multimode thin modems are targeted for smartphones and tablets as well as other connected devices.
"The products are future proof for successor standards, and cover all major access standards including LTE FDD/TDD, HSPA+, TD-SCDMA and GSM," said Mats Norin, head of modems at Ericsson in a statement. "The small size and low power consumption, leading to longer battery life time makes these modems a very attractive product on the market."
Ericsson said that once the multimode thin modem business has been fully integrated into Ericsson in the fourth quarter 2013 the opperation will continue to be reported as a segment.