ST Delivers Strategic Plan
ST announced its strategic plan for recovery this morning. There are no surprises.
STMicroelectromics plans to exit its ST-Ericsson joint venture by Q3 2013 and to focus the company on five areas: MEMS and sensors, smart power, automotive ICs, microcontrollers and application processors including digital consumers.
The aim is to deliver operating margins of 10% with quarterly net operating costs of $600-650m by the beginning of 2014.
The company’s new strategy is based on two operations, Sense and Power and Automotive and Embedded Processing.
The sense and power segment includes MEMS and sensors, power discretes, and analogue and the automotive segment ranges from powertrain to safety and from body to infortainment.
The embedded processing operation focusses on the core of systems rather than wireless broadband access. It includes microcontrollers, imaging, digital consumer, application processors and digital ASICs.