announced a new joint venture Wednesday that will supply wireless chips to several handset makers.
The companies said they will merge Ericsson's mobile platforms and STMicro's ST-NXP wireless division into a 50/50 joint venture. The merged divisions will supply semiconductors to
, the joint venture between
The joint venture will be headquartered in Geneva, Switzerland, and each parent company will appoint four directors to the board. Ericsson said Carl-Henric Svanberg, president and CEO of Ericsson, will serve as chairman, and STMicro will appoint Carlo Bozotti, the company's president and CEO, as the vice chairman.
"By combining the complementary strengths and product offerings of Ericsson and ST in platforms and semiconductors, the joint venture is well positioned to become a world leader," said Svanberg, in a statement. "The industry continues to develop at a swift pace and customers see benefits from our broad offering. This partnership is a perfect fit and secures a complete offering, as well as the necessary scale for technology leadership."
Shares of Ericsson were lately down 0.9% to $10.25. STMicro was higher by 2.6% at $12.21.