LONDON – ST-Ericsson NV, the struggling mobile phone chip joint venture, has announced the appointment of Didier Lamouche as president and CEO, with effect from Dec. 1, 2011. Lamouche, who is chief operating officer of STMicroelectronics NV, replaces Gilles Delfassy who has led ST-Ericsson since September 2009.
In a statement ST-Ericsson credited Delfassy with the transformation of the company's product portfolio from one that served legacy feature phone products to one that addresses smartphones and tablet computers. However, Delfassy has also been in place as the company has reported large net losses on its sales revenue and built up large debts to its parent companies.
For the third quarter of 2011 ST-Ericsson reported a net loss of $211 million on sales of $412 million. The net financial position on Oct. 1 2011, was negative to the sum of $594 million.
Gilles Delfassy will support Lamouche, as senior advisor to the CEO, during a transition period. Didier Lamouche, while maintaining his title of COO at ST, will work full time on leading ST-Ericsson.
Didier Lamouche, COO of STMicroelectronics and now CEO of ST-Ericsson
ST-Ericsson said Lamouche is being appointed as the company enters a different phase of existence with a prime focus on proliferating design-wins and scaling up and delivering volume.
"I am very pleased with this appointment," said Hans Vestberg, chairman of ST-Ericsson, in a statement. The statement added that Vestberg was quoted speaking on behalf of the whole board of directors. "On behalf of ST-Ericsson's board, I thank Gilles for his strong contribution to ST-Ericsson."
STMicroelectronics and Ericsson remain committed to the 50/50 joint venture, the statement said.
I think the idea was to bring the STM approach to the company with focus being on DWINs and new revenue, while Delfassy was acting as a change manager. Unfortunately for him, the change saw the company lose revenue and burnt a hole in the pockets of it's parents. Lamouche has recently joined STM as COO but he has a good history with IBM semiconductor. If I am not wrong, he managed the creation of Altis Semi. venture between IBM and Infineon.
I wonder what sort of shift will the company see as a result of this new appointment? I would like to have seen a little more background on the new guy in charge. Did he lead a cost cutting or restructuring effort in his previous position? What is the motivation / driving force behind this selection other than the last guy was leading when losses were mounting?
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