Monday, December 10, 2012

ST Exits Wireless Broadband to Focus on Sensors, Embedded Processing

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.

“Our new strategy is centered on leadership in sense and power and automotive products, and in embedded-processing solutions. Our specific focus is on five product areas: MEMS and sensors, smart power, automotive products, microcontrollers, and application processors including digital consumer," stated Carlo Bozotti, President and CEO of ST.

The company will be organized in two product segments: Sense & Power and Automotive Products; and Embedded Processing Solutions.

Sense & Power includes MEMS and sensors, power discrete and advanced analog products;  as well as Automotive Products, including powertrain, safety, body and infotainment.

In Embedded Processing Solutions the company will focus on the core of the electronics systems rather than on wireless broadband access. The Embedded Processing Solutions segment includes microcontrollers, imaging products, digital consumer products, application processors and digital ASICs.

ST said it expects both product segments to be profitable and to generate cash. In particular, Embedded Processing Solutions will turn to profitability leveraging on a stronger product and technology focus, expanded customer base and manufacturing synergies between microcontrollers and digital products.

For its part, Ericsson said it is negotiating with ST concerning a suitable outcome of their ST-Ericsson joint venture. Ericsson believes that the modem technology, which it originally contributed to the Joint Venture, has a strategic value for the wireless industry, and that a successful market introduction of new LTE modems is needed in the market.


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