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 whose work appeared in magazines like Rolling Stone, Playboy, Mail on Sunday, Publico and South China Morning Post. He is the co-founder of FINN, a corporate communications agency where he advises startups and multinationals on their PR and Mustr, the easiest media database for PR professionals. You can contact him on Twitter, Linkedin or Skype (rafweverbergh).