STOCKHOLM, April 23 Loss-making chip maker
ST-Ericsson said on Monday it would shift some research and
development to parent STMicro and expand other
cost-cutting moves as it moves to offset a decline in business
from feature-phone manufacturers.
ST-Ericsson, a 50-50 joint venture of Sweden's Ericsson
and France's STMicroelectronics has lost $2 billion
in its three years of operation as revenues from key clients
Nokia and Sony Ericsson have shrunk 70 percent.
ST-Ericsson said the new measures in addition to ongoing
restructuring plans would bring savings of about $320 million
when they were completed at the end of 2013.
Restructuring costs will total $130-150 million.
ST-Ericsson will "transfer to STMicroelectronics its
stand-alone application processor activities and ... take
additional measures to accelerate time-to-market and lower the
breakeven point," the company said in a statement.
ST-Ericsson has been seen as a "strategic asset" for
potential buyers such as Nvidia, Intel and
Texas Instruments, sources familiar with the situation
told Reuters last month.
In addition to modems, ST-Ericsson's strength, today's
smartphones use application processors that function in the same
manner as a central processing unit (CPU) on a computer, running
software and graphics.
ST-Ericsson releases its first-quarter results later in the
day, after markets in the United States close.