By Paul Sandle
BARCELONA Nov 16 French-Italian group
STMicroelectronics has no plans to buy out
partner Ericsson from their struggling wireless
chipmaker joint-venture ST-Ericsson.
When asked if buying out Ericsson was under consideration,
STMicro President and Chief Executive Carlo Bozotti, speaking on
the sidelines of a Morgan Stanley conference, told Reuters: "No,
Bozotti, speaking to investors at the Morgan Stanley
Technology, Media and Telecoms conference on Friday, also
repeated a denial of any plan to split STMicro into its digital
and analogue divisions, a scenario reported in the press.
"I want to say it again, we do not have any initiative ...
this is just not true," he said. "This has never been presented
to our board. We are completely aligned."
He said there were a lot of synergies between analogue and
digital businesses, adding that he wanted to focus on a
strategic plan for the business to be unveiled next month.
Ericsson and STMicro said in October they had hired banks to
advise them on their joint venture which is under pressure from
the decline of Nokia, its biggest customer.
STMicro's full takeover of ST-Ericsson has been seen by
analysts as one of the best options for the venture.
ST-Ericsson had already revamped its strategy in April this
year, which included 1,700 job cuts and a plan to work with
STMicro to develop application processors.
STMicro makes chips for everything from TVs and PCs to
printers, smartphones, hybrid electric vehicles and medical
Bozotti also said STMicro would return to growth from the
second quarter next year, as this quarter and next continued the
flat trend seen since the middle of 2012.
"What we plan is stability over the fourth quarter ... and
then back to some growth over Q2 and a stronger second part of
the year," he said.
Bozotti told the conference the group's secure card business
was making progress, and it had signed a contract with Google
, which is one of the key players in the digital