Chip producer STMicroelectronics has announced a new strategic plan that’ll see it leaving the ST-Ericsson joint partnership with Ericsson. The move is expected to be completed in autumn 2013.
ST-Ericsson was set up in 2009 to provide semiconductor products and technology for the mobile industry. It currently employs approximately 6,700 people worldwide, most of whom work in research & development.
STMicroelectronics will still support ST-Ericsson as its supply chain partner, advanced process technology partner and application processor IP provider.
Carlo Bozotti, President and CEO of STMicroelectronics, said “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. These families are expected to experience solid growth rates driven by secular trends and fit extremely well with our market-leading positions and competitive advantages. Our innovative products in these areas combined with our world-class technology and manufacturing, bring us even more opportunities to significantly grow and gain market share. The new ST will be more focused, leaner and better positioned to deliver value to our customers and our shareholders, targeting to rapidly achieve operating margins of 10 percent.”
A new strategic direction for ST-Ericsson was announced in April, which involved plans to transfer stand-alone application processor activities to STMicroelectronics.