Business insider brought in to fix ST
A heavyweight business insider has been brought in to address the deteriorating situation at STMicroelectronics.
Georges Penalver formerly at Sagem and France Telecom and a general partner at US-based investment fund Cathaya Capital, has been appointed Chief Strategy Officer of ST.
ST has two big problems: one is its jv ST-Ericsson which has run up debt of $1.2bn since starting trading in 2009. It is losing $250m a quarter.
The other big problem is a collapse in sales at ST. From $9.73bn in sales last year, sales are expected to be $8.6bn this year – about the same level as they were when the current CEO took over in 2005.
On the one hand ST has a solid business in MEMS, discretes, power semiconductors and analogue, on the other hand it has slipped behind in the process technologies on which success in digital microelectronics depend.
Penalver’s job will be to find some resolution to these issues and he is expected to report with a new strategic plan in December.
The previous Corporate Strategy Officer Philippe Lambinet is leaving ST.
Meanwhile Jean-Marc Chery, the Chief Technology and Manufacturing Officer at ST takes on the additional job of General Manager of the Digital Sector.