Ericsson is looking to sell cellphone chip joint venture
According to the WSJ, Ericsson and its partner STMicroelectronics are looking to sell their joint venture ST-Ericsson, and have asked JP Morgan Chase to “explore opotions including a sale”.
ST-Ericsson is a joint venture for cellphone chips for cheap cellphones, but it has never been profitable since it was formed in 2009. It has trouble gaining traction with smartphone makers, and some of its clients like Nokia are in some trouble of their own, which impacts the busines negatively.
Both Ericsson and STMicroelectronics have other worries: Ericsson is cutting jobs, and STMicro has been unprofitable for the last year.
via WSJ.
Powered by Facebook Comments
About the author
Raf Weverbergh
Editor of whiteboard. Raf Weverbergh was a magazine journalist at Humo whose work appeared in magazines like Rolling Stone, Playboy, Mail on Sunday, Publico and South China Morning post before starting Whiteboard in 2012. He profiles entrepreneurs and businesses and loves to chat on Twitter, Linkedin or Skype (rafweverbergh).
