(Manufacturing.net) — Ericsson and STMicroelectronics today announced they have closed the transaction for the split-up of ST-Ericsson, with the formal transfer of relevant parts of the joint venture to each parent company. The plan, effective August 2, 2013, means some existing activities are being shut down with equal funding from both companies.
A number of activities will remain active, however, within one company or another. Ericsson has taken on the design, development and sales of LTE multimode modem solutions, which includes 2G, 3G and 4G interoperability. 1,800 employees and contracts have joined Ericsson due to the split-up.
STMicroelectronics has taken on the existing ST-Ericsson products, including the Global Navigation Satellite System connectivity solutions, plus certain assembly and test facilities. In total, approximately 1,000 employees have jointed STMicroelectronics.
Douglas Gilstrap, Senior Vice President and Chief Strategist at Ericsson said: “We welcome the team of about 1,800 modem-experts that join Ericsson. Ericsson continues to see great value in the LTE multimode thin modems as they are an important part of our vision of 50 billion connected devices in a Networked Society. The market potential is there and Ericsson will now focus on bringing the best modems to market, and work closely with customers to integrate them into their products.”
Georges Penalver, Executive Vice President, Chief Strategy Officer at ST said: “We have finalized the agreement fully on track to our plan, with minimized social impact and lower exit costs than anticipated. We welcome our new employees as we are adding strong competencies in the areas of embedded processing, RF, analog and power technologies, as well as in software and complex system integration, to fuel growth in many of our product areas where we have significant business opportunities.”