logo
Plus   Neg
Share
Email

STMicroelectronics To Quit ST-Ericsson - Quick Facts

STMicroelectronics (STM) announced its new strategic plan, an outcome of a strategic review started over a year before, as the company witnessed major changes in the dynamics of the wireless market. Owing to the major changes in the dynamics of the wireless market, the company has decided to exit ST-Ericsson after a transition period and is currently in talks on exit options, while it would continue supporting ST-Ericsson as their supply-chain partner, advanced process-technology partner and application-processor IP provider. This disengagement process has begun, with the transition expected to end during the third quarter of 2013.

According to Carlo Bozotti, President and CEO of ST, "The new ST will be more focused, leaner and better positioned to deliver value to our customers and our shareholders, targeting to rapidly achieve operating margins of 10 percent."

The company's new strategy is based on two product-segment organizations namely Sense & Power and Automotive Products; and Embedded Processing Solutions. ST said it would build on its position in Sense & Power, comprosing MEMS and sensors, power discrete and advanced analog products, and in Automotive Products, from powertrain to safety, and from body to infotainment. In Embedded Processing Solutions, the company would concentrate on the core of the electronics systems rather than on wireless broadband access.

ST would address an estimated $140 billion market in 2013 and has significant potential to grow and gain market share. Looking ahead, ST aims for an operating margin of 10 percent or more. Also, ST expects to reduce quarterly net operating expenses to an average quarterly rate in the range of $600 million - $650 million by the beginning of 2014, in order to achieve the new financial model.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
In a move likely to further inflame global trade tensions, President Donald Trump has threatened to impose a 20 percent tariff on all cars imported to the U.S. from the European Union. Trump claimed he would impose the new tariffs unless the EU removes tariffs and trade barriers placed on the U.S. The Federal Reserve has determined that the largest U.S. banks are strongly capitalized and would be able to lend to banks as well as households during a severe global economic recession. This is the fourth straight year that all banks have met the Federal Reserve's standards. The first round of results of the supervisory stress tests were released by the central bank on Thursday. The "safety" driver behind the wheel of a self-driving Uber was streaming a television show on her smartphone up until about the time of a fatal crash in March, according to a report from the Tempe Police Department. Uber's self-driving Volvo SUV, which was traveling at under 44 miles per hour, had struck and killed a pedestrian in Arizona on March 18.
Follow RTT