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ST and Ericsson agree to break up joint venture

3/18/2013 10:15 AM EDT
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eewiz
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re: ST and Ericsson agree to break up joint venture
eewiz   3/18/2013 1:24:35 PM
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Sooner or later, something of this sort was bound to happen. Its good that atleast they didnt declare bankruptcy and kill all jobs. So ST gets the App processor and Ericsson gets the LTE modem. SO what will happen to the integrated ModApp Novathor chips? who gets to keep it?

nobsnobs
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re: ST and Ericsson agree to break up joint venture
nobsnobs   3/18/2013 7:45:06 PM
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It does not matter who gets ModApps. Both are exiting this business so ModApps is dead for ST and Ericsson. Poor management will cost 3000 jobs. It is complete chaos over here.

CLiHsing
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re: ST and Ericsson agree to break up joint venture
CLiHsing   3/18/2013 10:08:50 PM
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According to Bozotti on the conference call, ST will continue to support ST-Ericsson's existing NovaThor product line but will discontinue development of new NovaThor products.

Python
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re: ST and Ericsson agree to break up joint venture
Python   3/19/2013 4:54:15 AM
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Super very good french italian KO. This end was forseen fromage the beginning of NXP mobile take over.

pelle
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re: ST and Ericsson agree to break up joint venture
pelle   3/19/2013 8:31:15 AM
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Apparently Samsung passed on taking over ST-Ericsson as it was. What about after the split? App processors are a dime a dozen but proven LTE basbands are pretty rare.. There is at least one company with deep pockets who might need one... How locked in would ST-Es designs be to STs fab processes?

Peter Clarke
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re: ST and Ericsson agree to break up joint venture
Peter Clarke   3/19/2013 12:09:16 PM
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@pelle While the products as they are go to STMicroelectronics, the LTE modem baseband technology is returning to Ericsson. I think Ericsson would be in the market to sell it on or invent a licensing business.

pysup
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re: ST and Ericsson agree to break up joint venture
pysup   3/19/2013 5:49:39 PM
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I have decided to never look for jobs in the mobile industry ever again!! It is too unstable and volatile

hb11us
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re: ST and Ericsson agree to break up joint venture
hb11us   3/19/2013 10:58:47 PM
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sorry to hear that. ST missed the opportunity to push their APP processor when they had a chance... Too late now. Intel will probably buy the APP processor from ST

eetimes_#2
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re: ST and Ericsson agree to break up joint venture
eetimes_#2   3/20/2013 1:36:11 AM
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What a bunch of numpties! How on EARTH could ST-Ericsson fail?? All I can say is that there must be some severe incompetence at the top. They are in a booming and profitable market. They have everything needed to make excellent products. Sure, they have been unlucky with the lunacy of Nokia and move towards the Samsung/Apple duopoly, but all that is starting to come to and end and competition is returning between mobile phone manufacturers (hence benefiting the horizontal integration business within which ST-Ericsson was involved). If anything, surely now would have been the ideal time to invest in ST-Ericsson instead of collapsing it! Seems to me very short-sighted and perhaps also a symptom of the yearly cycle of the bean-counters, something which I don't think should apply to industries such as semiconductors where it takes more than a year for investment dividends to pay off. Instead, what we are left with is the complete decimation of European semiconductors, with what should have been the most profitable divisions of ST, Ericsson and Philips/NXP (amongst several other acquisitions) wiped out in one swoop!

pelle
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re: ST and Ericsson agree to break up joint venture
pelle   3/20/2013 9:36:44 AM
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How is smartphone SoCs a "booming an profitable" market? It is being commoditized and margins is brutally pushed down. TI has exited, so has Freescale. Marvell is fighting for a hold after loosing RIM. The two largest customers, Apples and Samsung do inhouse designs. At the same time it is beeing attacked from the low end by China players like MediaTek etc.

hb11us
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re: ST and Ericsson agree to break up joint venture
hb11us   3/22/2013 12:49:12 AM
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You forgot QCOM. They have a sarong hold on the hi end market. And they are moving aggressively with many designs at the same time to take over the low end market. This will hurt Nvidia and MediaTek. I don't think ST-Ericsson could match the workforce and resources that QCOM is putting on their developments effort. ST or Ericsson solution will be history very soon unless they find a customer for their solution ...

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