As expected, STMicroelectronics (STM) and Ericsson (ERIC) plan to close ST-Ericsson after...

|About: STMicroelectronics NV (STM)|By:, SA News Editor

As expected, STMicroelectronics (STM) and Ericsson (ERIC) plan to close ST-Ericsson after failing to find a buyer for the loss-making mobile-chip joint venture. Ericsson will retain 1,800 workers and a suite of thin 4G mobile chips, while STMicro will keep 950 employees and other products. The rest of the staff will lose their jobs. The shutdown will cost STMicro $350-450M, less than a prior forecast of $500M. Ericsson had already made a provision of 3.3B Swedish kroners ($515.7M) in 2012. (PR)