STMicroelectronics Plans to Exit Chip Venture With Ericsson

STMicroelectronics NV will sell its stake in the unprofitable wireless-chip venture with Ericsson AB by the third quarter of next year to remove a drag on profitability at Europe’s biggest semiconductor manufacturer.

Chief Executive Officer Carlo Bozotti is discussing options for an exit from ST-Ericsson with the Swedish co-owner, Geneva-based STMicroelectronics said today. Ericsson continues to believe that the technology it contributed to the venture, formed in 2009, has “strategic value” for the wireless industry, the Stockholm-based company said separately.