The 50/50 joint venture that united the wireless semiconductor division of STMicroelectronics and the mobile platform division of Ericsson has become ST-Ericsson. The announcement follows the recent closing of the agreement announced in August 2008, between the parent companies, to merge Ericsson Mobile Platforms and ST-NXP Wireless.
ST-Ericsson is said to be a key supplier to four of the top five handset manufacturers, with combined pro-forma revenues of about US$3.6bn in 2008, and a solid cash position of US$400mn.
"ST-Ericsson is born as a leader, drawing upon the strong heritage of some of the best wireless companies. Thanks to our cumulative experience, unique portfolio and long-standing relationships with the top handset manufacturers, ST-Ericsson has the four fundamental components necessary for success: a commitment to innovation, a complete portfolio of wireless solutions, a solid reputation as a reliable and trusted partner and an experienced management team focused on execution," said Alain Dutheil, President and CEO of ST-Ericsson. "The strong backing of experienced parent companies, combined with the highly complementary and compatible cultures, gives ST-Ericsson an optimal starting point for quickly consolidating its position as a sustainable leader."
Dutheil stressed the primary importance of technology innovation to the new company. "We have the scale to invest and bring to market the technologies that will give our customers the momentum to succeed," he added. "We will build on a well-established tradition of technology and innovation leadership to create a well focused R&D powerhouse."