Ericsson and STMicroelectronics complete split-up

STMicroelectronics and Ericsson have completed the required restructuring to finalise their split up. Both the companies have shared their activities and transferred business, assets and manpower among themselves and some third parties effective August 2.

This split-up was between Ericsson and STMicroelectronics was announced on 18 March 2013. So, effective August 2, the joint venture is ceased to exist.

Ericsson has taken on the design, development and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. In total, approximately 1,800 employees and contractors have joined Ericsson borad.

ST has taken on the existing ST-Ericsson products, other than LTE multimode thin modems, and the GNSS (Global Navigation Satellite System)connectivity solution sold to a third party, and related business as well as certain assembly and test facilities. In total, approximately 1,000employees have joined STMicroelectronics.

Over 3,000 employees of the ST-Ericsson joint venture got affected by this split up, with over 1800 employees joining Ericsson and over 1000 in ST. Of the total 1800 employees joining Ericsson, most of them are from India, Sweden, Germany and China. These employees are working in design, development and sales of the LTE multimode thin modem products, including 2G, 3G and 4G interoperability.

Similarly over 1000 employees primarily in France and in Italy joined in ST and were transferred from the ST-Ericsson JV.  They are working on embedded processing, RF, analog and power technologies, software and system integration to fuel growth of the existing ST businesses.

“Over 3,000 ST-Ericsson’s employees have now found new homes with leading players of the industry, where they will contribute with their outstanding competences,” says ST-E CEO Carlo Ferro, “The transition has been completed executing on time and with lower costs than anticipated, while minimizing the social impact and with the full support of all employees.”

Besides the transfer of employees to the parting companies, some restructuring was done involving third parties.The ST-Ericsson JV has successfully closed transactions with third parties, including the sale of its Global Navigation Satellite System (GNSS) assets, the transfers of a Linux software team based in Lund, Sweden, and of a Wireless LAN team based in Noida, India, securing a new employer for a further approximately 200 employees.

In the whole restructuring process about 1,100 employees worldwide were rendered jobless.

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