Ericsson and STMicro to supply wireless chip for top mobile manufacturers
Ericsson is the biggest mobile telecom equipment maker. ST-NXP is the world third largest wireless-chip maker. What will happen if those two colaborate? It must be the top chip maker to serve four out of five top mobile manufacturers.
Ericsson agreed to merge its wireless chip division with Franco-Italian ST Microelectronics (which previously acquired Dutch’s NXP Wireless). This new merged company will be a tough competitor for Qualcomm and Texas Instruments, two largest in this area.
STMicro currently serves Nokia, Samsung, and Sony Ericsson; while Ericsson’s clients include Sony Ericsson (of course), LG, and Sharp. The only top mobile manufacturer that doesn’t use their service is Motorola.
The new company will employ 8000 people, with 5000 from STMicro and 3000 from Ericsson. Ericsson’s exec, Carl-Henric Svanberg, will be the Chairman of the board and ST’s CEO, Carlo Bozotti, will become the Vice Chairman.
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