ST-Ericsson

ST-Ericsson was a Swiss-headquartered, fabless semiconductor joint venture created by Ericsson and STMicroelectronics. It began operations on 3 February 2009, when the companies combined Ericsson Mobile Platforms with ST-NXP Wireless into a jointly owned business. The venture brought together Ericsson's experience in mobile-platform engineering, particularly for UMTS, 3GPP and emerging LTE technologies, with STMicroelectronics' multimedia, connectivity, application-processor and wireless-semiconductor capabilities. ST-Ericsson supplied technology primarily to mobile-phone and other handheld-device manufacturers rather than producing finished consumer devices under its own retail brand. The company's product strategy centered on complete mobile platforms. Its portfolio included application processors under the Nova name, cellular modem products under the Thor name, and integrated application-processor/modem solutions marketed as NovaThor. These products were intended to help handset manufacturers build devices supporting standards such as GPRS, EDGE, WCDMA, TD-SCDMA and LTE. The business inherited and extended the Nomadik application-processor work developed by STMicroelectronics and incorporated Ericsson Mobile Platforms' substantial 3G platform expertise. It also operated through a global research, engineering, sales and customer-support network, with important activities in Europe, Asia and North America. ST-Ericsson was a fabless company: semiconductor manufacturing was outsourced to external foundries, while the venture concentrated on architecture, chip design, software, platform integration, customer enablement and related development. At its height, it employed approximately 6,700 people worldwide, with more than 85 percent working in research and development. Its predecessor Ericsson Mobile Platforms had served customers including handset and electronics manufacturers such as HTC, LG, NEC, Sagem, Sharp and Sony Ericsson, while ST-Ericsson also developed products for the rapidly expanding smartphone and mobile-broadband market. The venture faced difficult commercial conditions. Mobile semiconductor competition intensified as established suppliers and newer platform vendors competed for smartphone design wins. ST-Ericsson failed to reach break-even, lost market share, and struggled to commercialize several products at scale. Although the company announced a broad Nova, Thor and NovaThor family, some products remained at prototype or sampling stages. The NovaThor U8500 did reach mass production and the company reported shipments of 10.7 million units during the fourth quarter of 2012, but this was not sufficient to resolve the venture's financial and strategic problems. In December 2012, STMicroelectronics said it intended to exit the joint venture. On 18 March 2013, the parent companies announced a plan to close ST-Ericsson and divide selected operations and assets between them. The restructuring included the sale of the venture's mobile-connectivity Global Navigation Satellite System assets and intellectual-property rights to Intel for $90 million, announced on 28 May 2013. Effective 2 August 2013, Ericsson took responsibility for LTE multimode thin-modem solutions covering 2G, 3G and 4G interoperability. STMicroelectronics assumed the other continuing ST-Ericsson products, related activities and certain assembly and test facilities, while the GNSS business sold to Intel was excluded. The split was formally announced as completed in August 2013, bringing the ST-Ericsson joint venture to an end.

ST-Ericsson's origins lay in two separate mobile-semiconductor activities. Ericsson Mobile Platforms was formed in 2001 from Ericsson Mobile Communications during the European telecommunications downturn. After Ericsson transferred its handset business to the Sony Ericsson joint venture, Ericsson Mobile Platforms became a platform-focused company supplying technology to handset makers. Its work concentrated particularly on UMTS and related mobile standards, while it also supported GPRS and EDGE. Development and customer activities were spread across centers including Lund, Basingstoke, Research Triangle Park and Nuremberg, with additional teams in Asia and other markets. Ericsson Mobile Platforms also contributed engineering resources to industry-standardization organizations such as 3GPP, the Open Mobile Alliance, the Java Community Process and the Open Mobile Terminal Platform. STMicroelectronics' contribution came from its wireless and multimedia semiconductor operations, including products developed through ST-NXP Wireless. ST had developed the Nomadik application-processor platform, beginning with the STn8800, and had experience in multimedia, connectivity, 2G/EDGE and 3G technologies. The NXP side had separately worked on Nexperia products and platforms. In August 2008, Ericsson and STMicroelectronics announced their intention to merge their wireless semiconductor businesses. The proposed combination was designed to unite Ericsson's cellular-platform and standards expertise with ST's chip-design and multimedia capabilities. The merger was completed on 3 February 2009, creating ST-Ericsson as a 50/50 joint venture. The company was incorporated and headquartered in Geneva, Switzerland. Each parent appointed four directors to the board; Hans Vestberg, then Ericsson's president and chief executive, served as chairman, while Carlo Bozotti, STMicroelectronics' president and chief executive, served as vice-chairman. The resulting company was fabless, outsourcing semiconductor manufacturing to foundries and focusing internally on chip architecture, design, software, platform integration and customer support. The venture sought to provide complete mobile platforms as the handset market moved from basic phones toward smartphones and connected devices. Its inherited and new technologies supported multiple generations of cellular connectivity, including GPRS, EDGE, WCDMA and LTE. The company also had a Chinese subsidiary, T3G, acquired in December 2008, which had worked on platforms for the TD-SCDMA standard since 2003. ST-Ericsson's global organization included major activities in France, Switzerland, Sweden, Finland, Germany, the United Kingdom, India, Singapore, China, Japan and South Korea. Approximately 6,700 employees worked across the company, and more than 85 percent were in research and development. LTE became an important development priority. In October 2008, before the joint venture formally began, Ericsson Mobile Platforms demonstrated an LTE handheld prototype and projected that the technology could reach the market around 2011. In December 2009, ST-Ericsson identified the M710 as a multimode platform supporting LTE and HSDPA. Later work included the M700, associated with stated downstream and upstream data-rate targets, and a family of processors and modems introduced in 2011. The principal commercial families were Nova application processors, Thor cellular modems and NovaThor devices combining application processing with modem functionality. The portfolio included products such as the A9500, A9540 and A9600; M5720, M5730, M5780, M7300, M7400 and M7450; and integrated platforms including the T5008, U4500, U8500, L9540, L8540 and L8580. Not every announced product appears to have reached broad commercial deployment. The U8500 was mass-produced, while the L8540 had reached sampling by late 2012. ST-Ericsson reported shipments of 10.7 million U8500 units in the fourth quarter of 2012. Despite its technical portfolio, ST-Ericsson faced intense competition and weak financial performance. It did not achieve break-even and lost market share during a period in which mobile-device manufacturers increasingly consolidated around competing semiconductor platforms. On 11 December 2012, STMicroelectronics indicated that it intended to exit the venture. On 18 March 2013, the parents announced the chosen closure and division plan. ST-Ericsson subsequently sold its GNSS connectivity assets and related intellectual property to Intel for $90 million. The final allocation took effect on 2 August 2013: Ericsson assumed the LTE multimode thin-modem solutions, including interoperability across 2G, 3G and 4G, while STMicroelectronics took over the other continuing ST-Ericsson products, related business and certain assembly and test facilities. The GNSS business transferred to Intel. The transaction was announced as closed in August 2013, ending ST-Ericsson as an operating joint venture.

• 2013

  Joint venture is closed and operations are divided

  [1]ST-Ericssonen.wikipedia.org

  The parents completed the split, with Ericsson taking LTE multimode thin modems and STMicroelectronics taking other continuing products and activities.

• 2012

  U8500 reaches mass production

  [1]ST-Ericssonen.wikipedia.org

  The U8500 became a mass-produced integrated platform; the company later reported 10.7 million units shipped during the fourth quarter.

• 2011

  Nova, Thor and NovaThor families are presented

  [1]ST-Ericssonen.wikipedia.org

  ST-Ericsson introduced a broad family of application processors, modems and integrated mobile platforms for handset manufacturers.

• 2009

  ST-Ericsson is established

  [1]ST-Ericssonen.wikipedia.org

  The companies completed the merger on 3 February, creating a 50/50 joint venture headquartered in Geneva.

• 2008

  Parents announce wireless-semiconductor merger plan

  [1]ST-Ericssonen.wikipedia.org

  Ericsson and STMicroelectronics announced their intention to combine Ericsson Mobile Platforms and ST's wireless semiconductor activities.

• 2001

  Ericsson Mobile Platforms is formed

  [1]ST-Ericssonen.wikipedia.org

  Ericsson Mobile Platforms emerged from Ericsson Mobile Communications during the European telecommunications downturn and subsequently became a platform-focused mobile-technology business.

Fabless mobile-semiconductor platform supplier serving handset and mobile-device manufacturers.

• Mobile application processors · 2011

  Nova

  Nova was ST-Ericsson's family of application processors for mobile phones and other handheld devices. The range included products such as the A9500, A9540 and A9600. It built on the Nomadik application-processor work inherited from STMicroelectronics and was intended to provide the processing, multimedia and system capabilities needed by mobile-device manufacturers.

• Cellular modems · 2011

  Thor

  Thor was the brand used for ST-Ericsson's cellular modem line. Listed products included the M5720, M5730, M5780, M7300, M7400 and M7450. The family addressed mobile connectivity across multiple generations of standards, including 2G, 3G and later LTE-related requirements, and was designed for integration into phones and connected handheld products.

• Integrated mobile platforms · 2011

  NovaThor

  NovaThor combined application-processing and cellular-modem functions in a single mobile platform family. Products listed by the company included the T5008, U4500, U8500, L9540, L8540 and L8580. The U8500 achieved mass production, while the L8540 was reported as available in samples near the end of 2012. The family targeted handset makers seeking a relatively integrated platform rather than separate processor and modem components.

• LTE cellular modems · 2009

  LTE multimode thin modem

  ST-Ericsson developed multimode modem technology intended to support LTE while maintaining interoperability with 2G and 3G networks. Development included the M710 and later M700 references. After the joint venture was dismantled, Ericsson assumed responsibility for the LTE multimode thin-modem solutions and their related design, development and sales activities.

• Satellite-navigation connectivity semiconductors

  GNSS connectivity solutions

  ST-Ericsson's mobile-connectivity portfolio included Global Navigation Satellite System technology for location-enabled mobile devices. The relevant assets and intellectual-property rights were sold to Intel in 2013 as part of the wind-down of the joint venture.

• 2013

  Sell GNSS assets and intellectual property to IntelM&A

  Background

  The wind-down required the parents to allocate or dispose of individual ST-Ericsson businesses and technology assets.

  Action taken

  ST-Ericsson agreed to sell its mobile-connectivity GNSS assets and intellectual-property rights to Intel.

  Aftermath

  The transaction was announced at a value of $90 million, and the GNSS business was excluded from the assets transferred to STMicroelectronics.

  Transaction value. $90 million (2013)

  Source

• 2013

  Divide remaining operations between the parent companiesStrategy

  Background

  Ericsson and STMicroelectronics agreed to close the joint venture after its commercial and financial difficulties.

  Action taken

  Effective 2 August, Ericsson took the LTE multimode thin-modem business, while STMicroelectronics took other existing products, related activities and certain assembly and test facilities.

  Aftermath

  The split was announced as completed in August 2013, ending ST-Ericsson as an operating company.

  Source

• 2012

  STMicroelectronics chooses to exit the joint ventureStrategy

  Background

  ST-Ericsson had failed to reach break-even and had lost market share amid intense competition in mobile semiconductors.

  Action taken

  STMicroelectronics announced that it would move out of the joint venture, prompting the parents to evaluate a wind-down and asset-allocation plan.

  Aftermath

  The companies announced the closure and division of the venture in March 2013.

  Source

• 2011

  Launch the Nova, Thor and NovaThor portfolioProduct launch

  Background

  The venture needed a broad platform portfolio spanning application processing, cellular modem functionality and combined solutions for mobile-device manufacturers.

  Action taken

  ST-Ericsson presented Nova application processors, Thor modems and NovaThor integrated platforms.

  Aftermath

  The portfolio provided the company's principal product architecture, although several announced products did not appear to achieve broad market deployment.

  Source

• 2008

  Combine Ericsson Mobile Platforms and ST-NXP WirelessM&A

  Background

  Ericsson and STMicroelectronics sought to combine complementary wireless-semiconductor activities, including Ericsson's mobile-platform technology and ST's multimedia, connectivity and cellular-chip operations.

  Action taken

  The companies announced the proposed merger and subsequently established ST-Ericsson as a jointly owned venture.

  Aftermath

  The transaction created a global fabless supplier focused on mobile application processors, modems and integrated platforms.

  Source

1. 1ST-Ericssonen.wikipedia.org