With initial plans communicated by the parent companies back in December 2012, both Ericsson and STMicroelectronics today announced an agreement leading a way forward for the joint venture (JV) ST-Ericsson. Both the companies agreed on to carve up ST-Ericsson chipmaking joint venture in order to maximizes their respective future prospects and growth plans.
This is how the split will take place for the JV:
- Ericsson will take on the design, development and sales of the LTE multimode thin modem products, including 2G, 3G and 4G multimode
- ST will take on the existing ST-Ericsson products, other than LTE multimode thin modems, and related business as well as certain assembly and test facilities
- Starting the close down of the remaining parts of ST-Ericsson
- Ericsson will assume approximately 1,800 employees and contractors job cuts, with largest concentrations in Sweden, Germany, India and China.
- The formal transfer is expected to be completed during the third quarter of 2013.
Also, the company today announced that Carlo Ferro will serve as new President and CEO of ST-Ericsson, effective April 1, 2013 and will succeeds Didier Lamouche. Ferro is currently COO of ST-Ericsson.