Europe’s largest chipmaker STMicroelectronics exits Ericsson JV

Switzerland's STMicroelectorincs, one of the world's largest semiconductor manufacturers, said yesterday that it has decided to quit ST-Ericsson, a joint venture with Swedish telecom equipment major Ericsson, which manufactures wireless chips.

The company has taken the decision as a consequence of the major changes that occurred in the dynamics of the wireless market, ST said in a statement.

ST's president and CEO Carlo Bozotti said, ''Today we are announcing the new ST, aligned with the new market environment. Based on that, we have made the decision to exit ST-Ericsson after a transition period.''

''We will continue to support ST-Ericsson as their supply-chain partner, advanced process-technology partner and application-processor IP provider,'' he added.

Geneva-based ST is a leading integrated device manufacturer serving all electronic segments with 12 manufacturing sites and a worldwide network.

Its principal wafer fabrication plants are located in Italy and France while back-end assembly and test and packaging units are in Singapore, China, Malaysia, Philippines, Morocco and Malta.