Today's amalgamation between ST-NXP Wireless and Ericsson Mobile Platforms is aimed at stopping the Americans from taking over the wireless telecoms industry in
"We want to be the undisputed leader in mobility solutions, but we cannot do it alone", said ST's CEO, Carlo Bozotti, at today's press conference, adding, "but we can do it now. That is the rationale for the joint venture."
The joint venture's position in terms of IPR, in terms of its customer base with four out of the top five hand-set vendors as customers of the jv, in terms of overall scale, and in terms of the jv's financial strength, give it a solid base for world leadership in mobility solutions.
"I believe this is about Europe", added Bozotti, "it's a great enterprise in
European leadership in telecommunications has been a tradition in the world electronics industry for many decades, with the US traditionally dominating the computer sector, and Asia dominating in consumer.
But, with the Americans making big investments in wireless telecoms, Europe's traditional supremacy is under threat.
No one in the electronics industry will want an American company ever again dominating an electronics industry sector like Intel and Microsoft dominated the PC sector.
Intel and Microsoft suck around 90 per cent of the profit from the PC sector, and have imposed quasi-monopolies which have stifled innovation for two decades.
Intel's rapacity has, essentially, made the rest of the electronics industry wary of the Americans, and Qualcomm's behaviour in Europe, where its business practices are under investigation by the EC, hasn't helped the
That Europe is circling the wagons to stop the Americans, is a natural response to fears that the Americans want to dominate the European wireless industry.
Today's new joint venture will give Europe a competitor to stand up to the big US players. "We have a technology base to compete with anybody," said Bozotti, "and we have a customer base to compete with anybody."
US domination would be bad for the industry, bad for
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Comments (4)
Let's say you're an employee from the new super JV. From which parent do you think it is best to come from? And worst? ^^
Here at the NXP side of the JV, we dont really know what to think about this merger... :/
Djonne
Posted by Djonne | August 20, 2008 3:19 PM
Posted on August 20, 2008 15:19
Well Bozotti made a big point of the multi-national make-up of the ST-NXP Wireless team at today's press conference saying that there were 'about ten different nationalities in my management team.'
But he also said: "In the case of wireless it's very much run in France."
So, in one way there are probably more opportunities in France.
But ST is experienced at runnning design centres all over the world and has a good record in being supportive of them.
Here in the UK ST has had a big operation in Bristol for 25 years since buying Inmos in 1989. ST's Bristol design centre now has 220 engineers of which over 30 were recruited in the last year, and they seem happy. So much so that Bristol University last year gave an honorary doctorate to ST's former CEO in recognition for all he had done to promote Bristol's design excellence.
Then there's the former VLSI Vision team which ST bought up in Edinburgh. Pretty content and intact still,
So, I would say you'd be very unlucky to have a bad experience, no matter where you are situated, or how you came to find yourself under the ST umbrella.
Posted by David Manners | August 20, 2008 3:38 PM
Posted on August 20, 2008 15:38
Nice things hear about ST.
I graduated in Grenoble 2 years ago and there sure is sort of strong ST mania going on there. If that's worldwide I guess it really means something positive... :)
But it's not the good willingness of ST that we are considering, but its capability in merging one company with one that is already a merger that hasn't been completed. 3 roadmaps, I guess near that 100 sites worldwide (68 for ST-NXP). A lot of counter-productive site-protectionnism in sight dont you think? :/
Plus it seems to us that EMP has a lot more overlap in its wireless businesses with NXP than ST has with NXP.
Djonne
Posted by Djonne | August 20, 2008 3:58 PM
Posted on August 20, 2008 15:58
You are right. In such a situation you would expect lay-offs though I would think a recent graduate with a couple of years experience is too valuable a commodity to be laid off.
And I agree the NXP ST merger was complementary in that ST did up-market phones and NXP did cheap ones, and that EMB's platform skills overlap with NXP's Nexperia skills.
But, Bozotti was saying today he wants world leadership 'in mobility solutions' and that means at least matching the R&D spend of Qualcomm which is $1 billion a year) ,and probably means out-spending Qualcomm, so the overall trend for the new jv should be expansionary.
And I bet the EC is backing this in many ways, so there will be a lot of resources behind it.
So I don't believe the intention behind this jv is cost-cutting. I think the intention is to expand the joint company.
Posted by David Manners | August 20, 2008 4:12 PM
Posted on August 20, 2008 16:12