Ericsson to create joint venture with ST Microelectronics
Swedish telecommunications equipment maker Ericsson said Wednesday it was to create a joint venture for mobile applications with ST Microelectronics, dpa reported.
The 50/50 joint venture will supply mobile applications and semiconductors to groups like Nokia, Samsung, Sony Ericsson, LG and Sharp that account for almost 80 per cent of global handset deliveries, Ericsson said in a statement.
The joint venture between Ericsson Mobile Platforms and ST-NXP Wireless will have almost 8,000 employees and in 2007 posted combined sales worth 3.6 billion dollars.
"By combining the complementary strengths and product offerings of Ericsson and ST in platforms and semiconductors the joint venture is well positioned to become a world leader," Ericsson chief executive Carl-Henric Svanberg said in a statement.
Svanberg was slated to be board chairman of the joint venture that was to have its headquarters in Geneva, Switzerland.
The deal hinged on approval from regulatory authorities.