STMicroelectronics NV, Europe’s largest semiconductor maker, sent Chief Financial Officer Carlo Ferro to help revive joint venture ST-Ericsson and named its chief accounting officer Mario Arlati to succeed him.
Ferro will become chief operating officer of ST-Ericsson after serving since May 2003 as CFO at STMicroelectronics, where he has consolidated silicon fabrication plants and improved the balance sheet, the Geneva-based manufacturer said today in a statement.
ST-Ericsson, a joint venture with Ericsson AB that makes chips for mobile handsets, hasn’t been profitable since it was formed in 2009. The company wasn’t ready for the industry’s transition to smartphones and has struggled to bring out higher-powered chipsets as the low-end phone business at customer Nokia Oyj declined. Its fourth-quarter net loss widened to $231 million from $177 million a year earlier.
Ferro, who has been on the ST-Ericsson board since the venture’s inception, will “play a fundamental role in the turnaround” of the partnership, STMicroelectronics Chief Executive Officer Carlo Bozotti said.
The parent companies named Didier Lamouche as ST-Ericsson’s third chief executive officer on Nov. 28.