Ericsson and STMicroelectronics complete ST-Ericsson split
05 August 2013 |
Sweden’s Ericsson and STMicroelectronics have completed the separation of ST-Ericsson.
Initially announced in March this year, the deal became effective of August 2 2013 and will see 1,800 ST-Ericsson employees move to Ericsson.
Ericsson will also assume responsibility of the design, development and sales of the LTE modem solutions, including 2G, 3G and 4G interoperability.
“Ericsson continues to see great value in the LTE multimode thin modems as they are an important part of our vision of 50 billion connected devices in a networked society,” said Douglas Gilstrap, SVP and chief strategist at Ericsson.
“The market potential is there and Ericsson will now focus on bringing the best modems to market, and work closely with customers to integrate them into their products."
STMicroelectronics will take on the existing ST-Ericsson products, excluding LTE modems and the Global Navigation Satellite System (GNSS), and an estimated 1,000 employees will join the company.
Georges Penalver, EVP and chief strategy officer at STMicroelectronics, said: “We welcome our new employees as we are adding strong competencies in the areas of embedded processing, RF, analog and power technologies, as well as in software and complex system integration, to fuel growth in many of our product areas where we have significant business opportunities."
The final close down of ST-Ericsson’s outstanding elements is in progress, and both companies are taking equal responsibility for the funding of the process.
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