Thursday, December 20, 2012

Ericsson Decides Against Taking Full Ownership of ST-Ericsson

Ericsson has decided not to take over full ownership of ST-Ericsson and  will take a non-cash charge of approximately SEK 8 b. in Q4, 2012 related to its 50% stake in the company.

Earlier this month, STMicroelectronics unveiled a new corporate strategy under which it will exit the ST-Ericsson partnership and the wireless broadband market, choosing instead to focus on sensors and embedded processing.

Ericsson continues to explore various strategic options for the future of ST-Ericsson assets. The company said it continues to believe that the modem technology, which it originally contributed to the JV, has a strategic value for the wireless industry.