Ericsson in mobile joint venture

Swedish telecoms equipment group Ericsson has announced it is to join forces with semiconductor group STMicroelectronics.

The two companies said on Wednesday they would combine their chip and mobile applications businesses into a venture with proforma 2007 sales of $3.6 billion.

The deal will merge Ericsson Mobile Platforms and ST-NXP Wireless into a 50/50 fabless joint venture that will employ almost 8,000 people.

The venture will serve the two group’s existing customers such as Nokia, Samsung, Sony Ericsson, and Sharp.

“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,” said Carl-Henric Svanberg, President and CEO of Ericsson, in a statement.

AFX/The Local