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.
Powered by Facebook Comments