STMicroelectronics is putting its hopes for the mobile chipset business in its 50/50 joint venture with Ericsson, which will now operate under the name of ST-Ericsson.
This effectively combines the ST-NXP Wireless business with Ericsson’s mobile platform division, and observes have been quick to note that the NXP name has disappeared.
This is no surprise as ST holds majority control of the ST-NXP Wireless mobile chipset business which was formed last year when ST effectively acquired a chunk of NXP’s mobile handset business.
At that time NXP made clear its intention to focus the mobile basestation market.
Earlier this month, ST bought out NXP’s final 20% stake in ST-NXP Wireless, so NXP has no further interest in the joint venture.
The price paid by ST for the remaining 20% stake was $92m, a sum which was said to be based on the performance of ST-NXP Wireless over the last year.
Last year, ST paid $1.5bn for the 80% share in ST-NXP.
The official launch of ST-Ericsson follows the recent closing of the agreement announced in August 2008, between the parent companies.
It represents a mobile phone chipset business with combined pro-forma revenues of about $3.6bn in 2008. And it will compete in a market which is currently dominated by two suppliers, Qualcomm and Texas Instruments.
According to Alain Dutheil, president and CEO of ST-Ericsson: “The strong backing of experienced parent companies, combined with the highly complementary and compatible cultures, gives ST-Ericsson an optimal starting point for quickly consolidating its position as a sustainable leader.”
Dutheil also believed the merged company now has the scale to invest and bring technologies to market.
“We will build on a well-established tradition of technology and innovation leadership,” said Dutheil.
ST-Ericsson is developing chips and reference designs for GSM, EDGE, WCDMA, HSPA, as well as TD-SCDMA and LTE.
See also: Electronics Weekly's Focus on Wireless, a roundup of content related to wireless communications.