Ericsson and STMicroelectronics agreed to split up their joint venture, ST-Ericsson. Key points:
- 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
- The formal transfer of the relevant parts of ST-Ericsson to the parent companies is expected to be completed during the third quarter of 2013, subject to regulatory approvals.
- After the split up it is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China.
- It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST.
- Approximately 1,600 employees worldwide will lose their jobs in the restructuring. This includes about 500-700 positions in Europe, including 400 to 600 positions in Sweden and 50 to 80 positions in Germany.
- Carlo Ferro has been appointed President and CEO of ST-Ericsson to carry out the transition phase.