ST-NXP Wireless changes name to ST-Ericsson, 85% of employees in R&D
Created as a fabless company, ST-Ericsson will utilize the wafer-processing capabilities of parent company ST, as well as other third-party foundries.
The new name will surely alleviate some confusion as to what companies are currently involved in the wireless venture. Originally announced in April 2008, ST-NXP Wireless merged ST's and NXP's wireless businesses in early August launch. By the end of that month, however, ST announced the mobile platform division of Ericsson would join the fold and that it would buy NXP's 20% stake.
ST and NXP concluded the sale earlier this month, but the company's name had yet to change. The name change comes just in time for the Mobile World Congress in Barcelona starting on February 16.
According to ST and Ericsson, ST-Ericsson is a supplier to four of the top five handset manufacturers (Nokia, Samsung, Sony Ericsson, and LG), had combined pro-forma revenues of about $3.6 billion in 2008, and has a solid cash position of $400 million.
“The strong backing of experienced parent companies, combined with the highly complementary and compatible cultures, gives ST-Ericsson an optimal starting point for quickly consolidating its position as a sustainable leader," said Alain Dutheil, president and CEO of ST-Ericsson, in a statement today.
“We have the scale to invest and bring to market the technologies that will give our customers the momentum to succeed,” Dutheil continued. “We will build on a well-established tradition of technology and innovation leadership to create a well focused R&D powerhouse.”
Indeed, almost 85% of ST-Ericsson's 8000 employee workforce is in R&D, the company said.
ST-Ericsson will focus on platforms for GSM, EDGE, WCDMA, HSPA, as well as TD-SCDMA and LTE. Its connectivity and broadcast solutions span Bluetooth, FM, GPS, WLAN, Near Field Communications, and USB.
Created as a fabless company, ST-Ericsson will utilize the wafer-processing capabilities of parent company ST, as well as other third-party foundries. Headquartered in Geneva, Switzerland, the company also has full access to assembly and test facilities operated by ST.