ST-Ericsson chief executive to leave

11 March 2013 | Kavit Majithia

ST-Ericsson’s chief executive, Didier Lambouche, is to step down from his position at the end of this month, the company said today as part of a planned overhaul at the company.

Ericsson’s chip making joint venture, STMicroelectronics, said he would be leaving at the end of March to pursue “other opportunities”, after taking over as CEO in late 2011.

According to Reuters, STMicro already has plans to exit the joint venture, as it suffers from unprofitable returns, and has not enough new customers following a drop in business from Nokia.

The exit is expected to cost the company up to $500 million. Ericsson said it does not want to take over the operation.

It could shut down early, and parts of the business could be sold to competitors including Intel, Broadcom or Samsung.