The largest European chip manufacturer STMicroelectronics announced on Monday that it plans to exit its loss-making joint venture with Swedish Ericsson to better cope with the weakening global demand.
The Swiss company states that they are negotiating exit options from ST-Ericsson.
– The separation process has already begun, and the transition is expected to be completed in the third quarter of next year – the statement reads.
The withdrawal was announced as part of STMicroelectronics’ new strategic plan. The global economic crisis has harmed the sales of companies that produce semiconductors for phones and other electronic devices.
The President and CEO of the Swiss company Carlo Bozotti emphasized that STMicroelectronics will ‘continue to support ST-Ericsson’ as part of its supply chain and as its technology partner.
