mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

Lamouche Quits ST and ST-E.

Didier Lamouche has resigned both as COO of STMicroelectronics and CEO of ST-Ericsson.

No replacement has been named and there has been no announcement about whether Lamouche is moving to a new job.

 

In Q3 this year, ST has said it will have exited the ST-Ericsson joint venture.

 

Lamouche’s resignation at this stage of the game could be seen as a mark of his dissatisfaction with whatever the proposed plan for the ST – ST-E separation might be.

 

On the other hand Lamouche will be 54 this year and may well feel he’s had enough of what has been a challenging tenure.

 

Lamouche joined ST as COO in October 2010 in succession to Alain Dutheil.

 

In November 2011, Lamouche was appointed CEO of  ST-Ericsson in succession to Gilles Delfassy.

 

It was announced when Lamouche was appointed CEO of ST-E that he would be keeping his role as COO of ST.

 

The first quarterly results for ST-E under Lamouche’s tenure as CEO of ST-E were in Q4 2011 when ST-E had a loss of $231m on sales of $409m. 

 

In the last quarterly results of Lamouche’s tenure, Q4 2012, ST-E had a loss of $133m on sales of $358m.

 

Lamouche is a former CEO of Bull.

Tags: dissatisfaction, Ericsson, joint venture, resignation, succession

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25 Comments

  1. David Manners
    March 14, 2013 00:40

    You’re absolutely right it’s a shocking fall from grace. Europe was pre-eminent in wireless. I’d point to three bad decisions: Jorma Ollila handing over Nokia to the company lawyer; Nokia’s insistence that the three European mobile IC makers – NXP, ST and Ericsson Mobile Platform should merge, and Infineon’s sale of its mobile chip business to Intel. The universities, the research labs, the standards bodies are still there – for foreign companies to benefit from.

  2. ex European Engineer
    March 14, 2013 00:29

    Please stop the finger pointing and mourn the death of the wireless industry in Europe. Once upon a time, there were great companies leading this fantastic market from Europe: Nokia, Texas Instrument, STMicroelectronics, Ericsson Mobile Platform, Infineon, NXP, …. They were relying on a great network of research lab, universities and standardization bodies. What happened to them?

  3. Anonymous
    March 13, 2013 21:21

    The problem with M&A when you have three modem’s ups — then have to choose one to invest in is difficult.
    Then Management that are not execution experts… that allow good leadership selection….very tough times.
    I look back at the beginning of ST-Ericsson and realize Delfassy did not join STE since he had $20M golden handcuffs from TI. This put STE in the hands of a caretaker who made no decisions until he gave the leadership to Delfassy.
    All to save $20M —- in 2012 STE was loosing $3M per day.
    “Penny wise…pound foolish”

  4. Speculate
    March 13, 2013 19:35

    You are completely wrong when you claim that the Thorium program is the reason for the STE failure. Under the leadership of Gilles Defassy, modems were only referred to as small details that were necessary in order to sell the best App-CPU ever created by mankind in the whole universe, the 8500, which by the way was 3 years behind schedule.
    In addition, STE had the Hassium program which still today is very up-to-date technologywise. But a platform with the Hassium modem was cancelled because it was competing with the best APP-CPU ever created, the 8500. I think that Basingstoke should have some credits for the effort they did which was thrown away due to political reasons.
    Back to the thorium program, the HW was developed in a record time and the modem was ADAPT qualified before Intel/Infineon. So, the Thorium program was not the reason STE failed, not even close.

  5. Passenger
    March 13, 2013 16:50


    The second thing this has led to is that companies like STM has a lot of unproductive employees, USSR style. The first time is saw this I couldn’t believe it. There are whole organizations in ST-Ericsson (French side) that are designing and maintaining made-up “products” that nobody uses but themselves (I am thinking about different CAD support organizations in particular). And their only purpose is to create and maintain these “products” (USSR anybody?). It is just insane. When ST-Ericsson was forced to cut costs they were force to get rid of very productive engineers and organizations in US, UK, Finland, The Netherlands, Germany and Sweden, instead of in France, where the main problem were (and still is), because ST-Ericsson couldn’t fire anyone in France. The funny (or tragic) thing is that some of these French jobs at ST-Ericsson are subsidised with EU tax money. That means that the hard earned tax money paid by the British, Finnish, Dutch, Deutsch and Swedish employees that were fired, went to paying the subsidised salaries of their French colleges. I don’t know if I should laugh or cry. At least I see an end to this misery. Soon the French government will go bankrupt (like the rest of the governments in south of Europe), and then it all will end !

  6. Passenger
    March 13, 2013 16:48

    @Bitter and David: ST-Ericsson has great products available right now. But they are impossible to sell because one of the mother companies have gone out public and said that they will disengage in ST-Ericsson JV. Nobody will buy from a company that might not be around in half a years time.
    I think that there are great engineers working at ST-Ericsson, both French and Swedish (and other nationalities). Though, there is a big difference between France and Sweden. In Sweden you can get fired and that constantly happens in companies like Ericsson. Ericsson is constantly getting rid of their unproductive employees and streamlining their organization. In France on the other hand, it seems to be almost impossible to get laid off. An employment is for life, guaranteed by the French government. The first thing this has led to is that French companies cannot compete on a global market. Name one French company that is doing well without operating on a monopoly market or having huge subsidies from the French government? Anyone? …

  7. Ex STE employee
    March 13, 2013 16:00

    I have been in STE and have never seen ICs being on the critical path. Behind STE failure there are many reasons. The main one I see being Thorium program (LTE) that has accumulated more than 2 years of delay preventing STE to position as first and leader ahead of QC.
    So seriously, if I follow you on this exotic path that this JV was meant to externalise low performers, you need to consider that Ericsson did the same.
    Said that, swedish-french collaboration is culturally complex and I tend to agree that future Sw/Fr JVs should be considered with care…

  8. David Manners
    March 13, 2013 08:02

    I have just told our IT guys sbout the ‘too many comments’ message for the umpteenth time, Bitter. They say it’s to do with the spam filters. The amount of that is huge. I don’t know if they’ll find a way round it but next month we’ll have a different lot of IT people managing it on different servers and, hopefully, the situation will improve. For the moment what I do is save a copy of my post before I try to post it and then it’s not too onerous, tho still b. annoying, tto make multiple attempts to post. There is, however, light at the end of the tunnel coming in April.

  9. Bitter
    March 13, 2013 06:02

    Did they cancel U8500? Perhaps ask Linaro what they thought about the quality of STE source code? Do I need to mention the virtues of BT/WLAN on the same platform, the late and buggy deliveries, cost overruns, delays? Thor perhaps one might ponder? Well, too little, too late.
    It is all too easy to blame it all on management, when a part of the problem can be found by STE engineering looking itself in the mirror.
    The crap moment started out at the top and now the byproducts had enough time to seep down through the ranks until the whole mess stinks of bloated and inept management, engineering incompetence and general amateurishness.
    @David, submitting comments rarely works the first time.

  10. not so bitter
    March 12, 2013 13:19

    The problem is not in the employees. The problem is management who keeps canceling projects and changing the spec.

  11. Anonymous
    March 12, 2013 08:14

    Perhaps follow the actions of your ex CEO instead of trying to get some pity?

  12. Kid Shelleen
    March 12, 2013 07:27

    Yes please! When we had Sandeep, during all employee meetings he said things like “Well, the LG CEO told me that he needs a chip that can cost this many dollars and has these features”.
    Then we got Puskaric as a replacement and suddenly it was all about building brand awareness and no technology. Oooh I remember the new STE logo with its burnt orange colour scheme signalling all the right things.
    And then the biggest customer SonyEricsson kept on doing feature phones and asking for platforms to suit that kind of phone. And when they realized the feature phone was dead they turned to our arch enemy Qualcomm for smartphone platforms.

  13. Bitter
    March 12, 2013 06:34

    @David: Perhaps D.L was visited by the ugly truth and decided to quit:
    http://www.dilbert.com/strips/comic/2012-11-06/
    @Kain: Apparently the STE übermensch engineers are so good they can deliver soc after soc in no time despite the 3′rd rate management?
    Or maybe, pretend for a moment, the whole lot at STE/EMP now suck after about a decade of swedish/french/italian mismanagement?
    Makes better sense?

  14. STEemployee
    March 12, 2013 05:32

    Being an ST-Ericsson employee I can only say that we (who still are left in the company) have tough days ahead of us. We still believe in our products, and work really hard to make them happened. Not easy with all this bad press and turmoil in the world around us though..

  15. Kain
    March 11, 2013 23:13

    Ericsson’s problem has always been bureaucracy, middle management fighting each other and stuff like that, not the engineers.
    As for STE they will never survive anyway, it takes them years to produce socs which takes apple/Samsung/Qualcomm months. U8500 was 3 years delayed? Their new l9600 based on cortex a15 seems to have disappeared completely (should have been released this year) and their new sd-soi l8580 will come to mass market too late in 2014.
    The only worth they have seems to be the Thor lte modem which also is years too late. A sad state of affairs.

  16. David Manners
    March 11, 2013 22:54

    This is a rather magnificent stand-off between French Chauvinism and Lund-ish elitism, Bitter, not so long ago the French were saying one French engineer was worth ten Swedish engineers adding that the best Swedish engineers worked at Ericsson, the next best at Sony-Ericsson and the least best at Ericsson Mobile Products.

  17. David Manners
    March 11, 2013 22:22

    That’s an interesting theory, Passenger, it would explain ST’s apparent insouciance in the face of the slow-motion train wreck of ST-E.

  18. Bitter
    March 11, 2013 22:20

    Ah, it’s always a pleasure reading a swedish elitist bozo trolling. For sure, keep on pretending that the LTH educated, over-the-ears indebted careerist hordes did a better job than the french slackers, if that makes you feel any better.

  19. Anonymous
    March 11, 2013 22:08

    Maybe it is time to pop a bullet in the head of this zombie company?

  20. Passenger
    March 11, 2013 20:36

    Mr Lamouche was highly thought of by the employees (at least the one I speak to). He did a good job on the contrary of the two guys he succeeded. The rumour says that he didn’t see eye to eye with ST on the future for ST-Ericsson. That’s why he resigned. ST on the other hand must be the worth owner I ever come across. That company must be run by a bunch of clowns. Looking in the rear mirror it feels like ST only purpose with the ST-Ericsson JV was to get rid of unproductive French organizations and employees.
    It is impossible to lay off employees in France. So what can ST do to reorganize and remove all the dead weight it is carrying around. Nothing! But now comes this great opportunity to form a JV with Ericsson. Now someone at ST cracks this great idea. Why don’t we move all dead weight to this JV? Yes, great idea, problem solved. I hope that the Swedish industry learns from this and never ever think of forming a JV with a French company again. First Volvo-Renault and then ST-Ericsson. Do we really want to try this a third time?

  21. Bob
    March 11, 2013 19:53

    Sandeep Chennakeshu anyone?

  22. David Manners
    March 11, 2013 14:45

    Probably a better choice than Beppe Grillo who was proposed for the job last week.

  23. Kain
    March 11, 2013 14:34

    Time for Ericssson to call in Bert nordberg to clean this mess up?

  24. David Manners
    March 11, 2013 13:23

    Yes Johan, as you say Lamouche succeeded Delfassy as CEO of ST-E in 2011 but, in 2010, succeeded Dutheil as COO of STMicro.

  25. Johan
    March 11, 2013 13:01

    Lamouche succeded Gilles Delfassy to be correct. (We have had quite some CEO’s lately)

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