Ericsson and STMicroelectronics Joint Venture Gets Underway

Ericsson and STMicroelectronics complete deal to create world leader in semiconductors and platforms for mobile applications. The JV begins as a major supplier to four of the industry's top five handset manufacturers, who together represent about 80 percent of global handset shipments, as well as to other exciting industry leaders.


Ericsson contributed USD 1.1 billion net to the joint venture, out of which USD 0.7 billion was paid to ST. Prior to the closing of the transaction, ST exercised its option to buyout NXP's 20 percent ownership stake of ST-NXP Wireless.


The new company employs about 8,000 people - roughly 3,000 from Ericsson and approximately 5,000 from ST - the new global leader in wireless technologies is headquartered in Geneva, Switzerland.
http://www.ericsson.com
http://www.st.com