ST gives up on ST-Ericsson
STMicroelectronics' long awaited strategic plan has been published and, to nobody's surprise, the company is getting out of ST-Ericsson, its loss making joint venture. According to the company, negotiations are in progress and it expects to have withdrawn during Q3 of 2013.
Meanwhile, the company has identified five growth drivers - MEMS and sensors, smart power, automotive, microcontrollers and applications processors. Going forward, it will have two segments - Sense and Power, and Embedded Processing Solutions.
The realignment will not be without a cost. The company says it is targeting an operating margin of at least 10% and to do this, will need to reduce its operating expenses - usually the code word for job losses.
