ST-E producing a plan; limits to ST’s patience .
ST-Ericsson will produce a plan for getting out of its troubles “in the next period”, according to the company’s US boss Bob Krysiak.
Asked what would happen if STMicroelectronics doesn’t approve of the plan, Krysiak replied: “We’re not going to stay there forever,” reports SeekingAlpha in a transcript of an interview Krysiak had with Goldman Sachs.
Krysiak added: “I couldn’t put a date or it’s like a financial principle under which we will say enough is enough. Now certainly it’s not going to go on forever for sure. I don’t know how the management patience is. There are some limits.”
Asked if Ericsson of ST is in the driving seat on the jv, Krysiak replied: “ST is managing that for sure because it’s the semiconductor expert.”
Nonetheless when ST-Ericsson’s CTO left last week it was announced that Ericsson, not the ST-Ericsson board or ST, would be appointing the replacement.
Krysiak identified the two main problems at ST-E as being the collapse of Nokia as both a customer and a performer n its own market and ST-E’s failure to meet its new product schedule.
On the latter issue, Krysiak said: “They’re pushing hard to get the new products out, it’s their pre-occupation and they’re working with every customer you could imagine. They are not silently working in isolation. They are working every day, in Asia, in North America and with customers.”