ST, NXP begin detailing wireless joint venture
To be headquartered in Switzerland, the new company will begin operations focused on 2G, 2.5G, 3G, and multimedia connectivity, NXP and ST said, noting ST-NXP Wireless will also look to future wireless technologies.
By Suzanne Deffree, Managing Editor, News -- EDN, June 26, 2008
NXP and STMicroelectronics today began detailing their coming handset-focused wireless joint venture, christening the company “ST-NXP Wireless,” briefly outlining business plans, and naming its management team.
The two Europe-based companies in April announced plans for the venture, agreeing to combine their respective mobile and wireless businesses, which together generated $3 billion in revenue in 2007.
To be headquartered in Switzerland, the new company will begin operations focused on 2G, 2.5G, 3G, and multimedia connectivity, NXP and ST said, noting ST-NXP Wireless will also look to future wireless technologies. Based on the combined 2007 revenue, ST-NXP Wireless is expected to enter the market in number three position once full closure of the joint venture takes place in Q3.
The two companies further said that ST-NXP Wireless will be headed by CEO Alain Dutheil, presently ST’s COO. The executive committee of ST-NXP Wireless, led by Dutheil, will include Abhijit Bhattacharya, currently financial controller of NXP’s multimarket semiconductors business unit, NXP, who is nominated to take the position of CFO; Tommi Uhari, current executive VP and general manager of ST’s mobile, multimedia and communications group; and Marc Cetto, currently executive VP and general manager of NXP’s mobile and personal business unit.
“The new name, ST-NXP Wireless, clearly illustrates the joining together of two complementary and formidable forces in the worldwide market to create a new global wireless powerhouse,” Dutheil said in a statement. “Our new company will be uniquely positioned to continue and extend customer relationships with the key players in the mobile and wireless industry, leveraging the passion and expertise of what is one of the best pools of talents in the industry.”
NXP and ST reminded that ST-NXP Wireless will be among the few companies with the scale to make the R&D investments. The joint venture will combine key design, sales and marketing, and back-end manufacturing assets from both parent companies and will rely on its parent companies and foundries for wafer fabrication services.
