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STMicroelectronics (STM -1.5%) and Ericsson (ERIC +2.5%) head in opposite directions after the...

  • Friday, January 18, 2:50 PM ET
    STMicroelectronics (STM -1.5%) and Ericsson (ERIC +2.5%) head in opposite directions after the WSJ reports JPMorgan has been hired to explore options for the baseband chip JV - a French paper reported the same in October. STM has already said it wants to exit the 50/50 JV, which is struggling to compete with Qualcomm, MediaTek, and others, by the end of Q3. Ericsson recently said it will take a $1.22B charge on ST-Ericsson for Q4, while adding it doesn't intend to buy STM's stake.
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This news story has 4 comments:

  •  
    Um, why doesn't Intel just buy it?
    18 Jan, 02:53 PM Reply Like
  •  
    Wouldn't rule it out completely, but the fact they use ARM CPU cores would be an issue. Also, restructuring the business and merging the baseband R&D ops with Infineon's could be a mess. I could see Spreadtrum or some other Chinese/Taiwanese chipmaker making a bid.
    18 Jan, 03:01 PM Reply Like
  •  
    Could Samsung buy them? assuming that Samsung needs LTE modem tech??
    21 Jan, 01:36 PM Reply Like
  •  
    That's plausible. Samsung made a couple of Wi-Fi/Bluetooth chip acquisitions last year, they're definitely trying to source more mobile components internally. Another acquisition might be needed to lower their baseband dependence on Qualcomm/Broadcom.
    21 Jan, 03:50 PM Reply Like
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