ST Realigns, Creates Flash Memory Unit

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 12/13/2006

To align the company to better meet market requirements, while preparing for strategic repositioning in flash memory, Geneva-based semiconductor giant STMicroelectronics today laid out plans to reorganize its product segments into three areas -- application specific, flash memory and industrial/multisegment.

The organizational changes go into effect on January 1, 2007.

In the memory space, ST recently announced full availability of its entire NAND flash memory family in 70nm process technology.

Carlo Bozotti, president and CEO of ST explained in a statement, “We are progressing in our efforts to pursue industry consolidation and financial deconsolidation in fash memory devices. This significant move, in combination with the reorganization of application specific groups and creation of the industrial and multisegment sector, enable ST to better address opportunities in the industry's fastest growing markets.”

At the same time, the company announced that Philippe Geyres, executive VP and general manager of the Home, Personal, Communication Sector, has resigned to pursue other career opportunities. ST noted that for more than 20 years, Geyres held key positions at ST and made significant contributions to the company.

As part of its realignment, ST is establishing a stand-alone flash memories group (FMG), to be led by corporate VP and general manager Mario Licciardello, which incorporates all of its flash memory operations, including technology R&D, all product related activities, front-end and back-end manufacturing, marketing and sales worldwide.

Further, to provide what it says is a “more synergistic contribution to the company's product requirements,” ST is adding to the former micros, power and analog (MPA) business its non-flash memory products - formerly under MPG - and its micro-electro-mechanical systems (MEMS) activity, to form a new sector, called industrial and multisegment sector (IMS).

Carmelo Papa, who is being promoted to executive VP, is set to lead the Industrial & Multisegment Sector. A new group within IMS, the microcontrollers, memories and smartcards group (MMS), is also being created under the leadership of new corporate VP Claude Dardanne.

Finally, ST said its application specific groups (ASG) will now be comprised of the newly created mobile, multimedia and communications group (MMC) and the home entertainment and displays group (HED) as well as the existing automotive product group (APG) and computer peripherals group (CPG).

In connection with these changes within ASG, Tommi Uhari is being promoted to executive VP and will lead the MMC and Christos Lagomichos is being promoted to corporate VP for the HED. The APG and CPG will continue to be managed by corporate VPs Ugo Carena and Gian Luca Bertino, respectively.

In other recent ST news, a Swiss prosecutor is conducting a criminal investigation of alleged fraudulent activities engaged in by a former treasurer of the company.