Ericsson to Create Joint Venture With ST Microelectronics

Ericsson to create joint venture with ST Microelectronics

STOCKHOLM, Aug. 20 (Xinhua) — Swedish wireless equipment maker LM Ericsson announced Wednesday that it will create a joint venture with Switzerland-based chip-maker ST Microelectronics.

The new company will bring together the mobile platforms unit of Ericsson, the world’s biggest mobile telecoms equipment maker, and ST’s ST-NXP Wireless division, the third-largest maker of wireless chips globally.

The 50/50 joint venture will supply mobile applications and semiconductors to the world’s top cellphone makers.

The joint venture with proforma 2007 sales of 3.6 billion U.S. dollars will have 8,000 employees and be headquartered in Geneva, Switzerland.

“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 president and CEO Carl-Henric Svanberg said in a statement.

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