Ericsson, ST form JV for mobile designs

MUMBAI, INDIA: Telecommunications provider Ericsson and semiconductor solutions provider STMicroelectronics recently announced that they are forming a joint venture to develop new designs for mobile platforms.

The new company, named ST-Ericsson, would be based in Geneva and has combined pro forma revenues of about $3.6bn (£2.4bn) in 2008, and a cash position of $400m (£275m) said a press release. ST-Ericsson would not operate its own fabrication facilities, but would farm out the work to third parties.

“ST-Ericsson is born as a leader, drawing upon the strong heritage of some of the best wireless companies,” said Alain Dutheil, president and CEO of ST-Ericsson.

“Thanks to our cumulative experience, unique portfolio and long-standing relationships with the top handset manufacturers, ST-Ericsson has the four fundamental components necessary for success: a commitment to innovation, a complete portfolio of wireless solutions, a solid reputation as a reliable and trusted partner and an experienced management team focused on execution.”

Dutheil stressed the primary importance of technology innovation to the new company.

“We have the scale to invest and bring to market the technologies that will give our customers the momentum to succeed,” he added.

“We will build on a well-established tradition of technology and innovation leadership to create a well focused R&D powerhouse,” he said.

The company would intake up to 85 per cent of the workforce that would comprise R&D staff. The firm would develop new GSM, Edge, WCDMA, HSPA, TD-SCDMA and LTE reference designs, the release said.

ST would contribute its chip manufacturing and testing expertise to the deal, and Ericsson will provide the majority of the intellectual property. It already has substantial business supplying mobile phone manufacturers such as Nokia and Samsung, the release added.