It would...so some signs of progress there.
BUT...but ST has also had to say goodbye to $750 million that ST-Ericsson owed and which ST will not now get as and when they sell off their share.
And Carlo Bozotti is saying that it could cost $500 million from this point for ST to divest itself of its share in ST-Ericsson.
And one analyst thought this figure seemed low.
So that is more than a billion-dollars of pain to last through 3Q13....Maybe 2014 will be better.
I don´t see ST in a bad position, even with the ST-Ericsson situation.
The company has a good revenue level, a considerable cash generation and a reasonable debt structucture. Considering that some competitors have a much bigger debt structure, ST is in a much better situation. And added to fact that ST has been very succesful in several markets, in my opinion, ST has a long life in the Market. Don´t you think so ?
What eewiz said.
The background is complex...and can probably be traced back to PP's very successful key accounts structure in the 1990s, of which Nokia was one.
But what was a successful backing of a few market leaders to gain system knowledge and make IC sales with hindsight we can see became an over-reliance on too few customers. If one of few customers makes a mis-step so does the supplier.
ST was keen to be an aggregator and not an inveterate pruner of divisions which gave the company the appetite to try assembling a European best-in-wireless.
But with Nokia as the anchor customer this has been problematic.
Unless FDSOI can arrive in time to save ST's and ST-Ericsson's digital aspirations.
I don't think FD-SOI is the savor, the technology will do well but the real savor will be European Union...they can't afford the last European semiconductor company to fail (Infineon is too specialized to count and ARM doesn't have manufacturing), they will ensure ST has enough orders from within the union