STMicro Shifts Strategy, Dumps ST-Ericsson

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Jennifer Baljko
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Re: no pain no gain
Jennifer Baljko   12/14/2012 11:07:29 AM
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FlyingScot - Well said... Europe really could use a few financially strong companies to be way-showers, especially since things here still seem so unsteady.

Jennifer Baljko
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Re: ST on correct path
Jennifer Baljko   12/14/2012 11:03:39 AM
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HM - yes, the auto industry will offer a safe haven for a while. We'll see  if it lasts.

Jennifer Baljko
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Re: More
Jennifer Baljko   12/14/2012 11:01:10 AM
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Bolaji, Agreed. Still lots to be done, and they have already taking steps towards revitalizing ops... but, it's a long road and the current in Europe is still very tough.

Jennifer Baljko
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Re: If the numbers don't add up...
Jennifer Baljko   12/14/2012 10:59:24 AM
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Cryptoman - that's right. it's a trickle down thing -- if big customers are hurting, it's just a matter of time before they have to make decisions like this.

FLYINGSCOT
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no pain no gain
FLYINGSCOT   12/11/2012 4:54:52 PM
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I hope that the split will benefit both companies as Europe needs a strong ST and a strong Ericsson.  I wonder what the future holds for Ericsson as it dissolves its joint ventures.

_hm
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ST on correct path
_hm   12/10/2012 7:21:25 PM
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This is proper direction for ST. Embedded and sense market for auto industry has vast potential and ST can contribute many more innovative products.

 

Bolaji Ojo
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More
Bolaji Ojo   12/10/2012 1:26:05 PM
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Exiting the ST-Ericsson joint venture is and should be only the first of steps ST needs to take to revitalize operations and make itself viable on a longer term basis. This is a start, one many people were expecting. There is still much to do.

Cryptoman
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If the numbers don't add up...
Cryptoman   12/10/2012 11:17:12 AM
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A loss of $1.4B in two years is too much given the current economic crisis. If the phone manufacturers are not doing well, their chip manufacturers will inevitably suffer. In addition, the increased competition means the chip makers have to operate on quite narrow profit margins to be able to sell. There comes a point where the business just isn't viable and it's time to exit.

I think ST has made the right decision by focusing on the automative market. As all the cars become electricity centric, there will be new opportunities to develop devices for new set of features that are going to be installed in them.

Maybe in a few years' time the climate may change and ST may revisit this JV option. However, for now ST needs to make money to pay the bills and to stay afloat somehow.

 



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