Do Pigs Fly?

“Do pigs fly?” replies Macolm Penn, CEO of Future Horizons when asked if the ST-Ericsson re-structuring would solve it’s problems.

The re-structuring was more about politics than technology.  No French or Swedish engineers will be sacked, but the UK site at Bristol will be closed.

 

Also to be closed are sites at Shanghai and Zurich and in Belgium and Finland.

 

1,000 engineers are to be sacked and 700 transferred to STMicroelectronics which is taking over the apps processor business.

 

That could be a way of dressing it up for sale to Taiwan, where it announced a co-development deal with HTC – or it could simply be seen as a capability which it needs to have in house.

 

The French union UNSA has three fears for the re-structured company. Once the LTE development is finished the unit could be sold. ‘Une fois la nouvelle génération de modem LTE sortie, l’activité sera-t-elle vendu comme beaucoup le craignent… avec potentiellement de nouvelles conséquences sociales importantes.’

 

The second fear  is that, once the election season is over, there could be further upheavals. ‘Une fois les élections présidentielles et législatives oubliées, l’afflux d’ingénieurs de STE dans ST provoquera-t-il un plan social (ou PSE) dans l’ensemble de la R&D de ST.’

 

And the third fear, and the most apocalyptic, is that a failure of ST-Ericsson will bring down STMicroelectroncs. ‘Si ça casse, la crainte de l’UNSA est toujours que STE entraine ST dans sa chute.’

 

ST-E has now run up a debt of $1bn since starting operations in 2009 and has lost a total of $2bn. It lost $300m in Q1.

Tags: fears, modem, pigs, shanghai, zurich

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16 Comments

  1. David Manners
    May 08, 2012 17:13

    You can claim, Robtronics, but I don’t see the French paying.

  2. Robtronics
    May 08, 2012 17:12

    Hey, porcine levitation is an art perfected in the UK, et al GPS etc… Can we claim royalties?

  3. Bitter
    April 25, 2012 11:12

    In Swedish news (lost the link)..
    The Ericsson head honcho Hans Vestberg stated that STE need to improve the poor execution, late and low quality products.
    Captain Obvious of Ericsson schools the amateurs at STE, I presume?
    Funny..

  4. Mike Bryant
    April 25, 2012 11:02

    Despite the lack of announcements, one wonders how many at Daventry are filling out applications to Imagination Technologies. Unfortunately that is yet more commuter traffic down the M1/M25 unless Hossein opens a new office near Daventry. Perhaps STM will sell him the whole place ?

  5. DS UNSA Sophia (Laurent)
    April 25, 2012 07:45

    Indeed I also read this site abiout Daventry on another site before reading it on your blog, but I don’t find it anymore.
    I guess it has been corrected.
    On Internet there is often some mistakes to be corrected. For my part, I am not fan of grammar and spelling. :) :) :)
    Other example, I just learned on the website of another French union that Zürich is in Germany !!!

  6. DS UNSA Sophia (Laurent)
    April 25, 2012 00:30

    No apologies needed.
    Just to relax a little bit in such hard circumstances.
    If you like “humour noir” have a look on this french 1st april joke : http://www.unsa-st.com/annonce-d-une-enorme-restructuration-dans-st,726

  7. David Manners
    April 24, 2012 23:38

    Sorry, DS UNSA Sophia (Laurent), it must be my mistake. I definitely saw on some document that it was intended to close 2 sites in the UK. Maybe it was on STE’s press release. I’ve seen so much stuff about ths I simply can’t recall where it came from. My apologies for citing UNSA.

  8. DS UNSA Sophia (Laurent)
    April 24, 2012 23:26

    Sometimes some news disappear from UNSA web site either for politic reasons or to correct a mistake. :)
    But there was never any news about Daventry on the UNSA websites. Never.

  9. Anonymous
    April 24, 2012 20:41

    YEAR: sales => net income => % loss/sales
    2008: $3.57B => -$297M => -8.3%
    2009: $2.52B => -$539M => -21.4%
    2010: $2.29B => -$591M => -25.8%
    2011: $1.65B => -$841M => -50.9%
    2012 Q1: $0.29B => -$0.33B => -113.8%
    source: internet (not fully accurate)
    In May 2010, the Greek government deficit was again revised and estimated to be 13.6% for the year…
    So who should feel more safe? STE or Greece ?

  10. David Manners
    April 24, 2012 16:40

    Yes Bitter you’re right, I was wrong, I’ve changed it in the post.

  11. David Manners
    April 24, 2012 16:39

    Very glad to hear it, Bloke in ST-E Daventry, thanks for telling me. I took the info from the site closures info on the UNSA web-site.

  12. Bloke in ST-E Daventry
    April 24, 2012 15:48

    Hi David,
    We have just been told that Daventry is definately not to be closed. (Yet!!).

  13. Bitter
    April 24, 2012 15:46

    Isn’t STM only taking over the applications processor business and WLAN/GPS/BT/Modem/RF stay within STE?

  14. David Manners
    April 24, 2012 15:04

    Yes I believe you’re right James and Bengt , I’ll change that, thanks for pointing it out.

  15. James
    April 24, 2012 15:00

    ST is taking over the application processor business, not the modem business like your post says.

  16. Bengt
    April 24, 2012 14:57

    Hi,
    Isn’t it the Application processor development that is moved to ST? And modem business left in ST-E?

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