updated 07:25 pm EDT, Wed March 14, 2012
Products competitive with Qualcomm's Snapdragon
ST-Ericsson is expected to unveil its plans to restructure its operations within the next two weeks. Reuters sources now claim that the reorganization of the joint venture between Sweden's Ericsson and France's STMicroelectronics is in line with the company's plans to be acquired by another chipmaker. Potential buyers named include AMD, NVIDIA, Intel, and Texas Instruments.
ST-Ericsson is known for making the modems used in today's smartphones. It has also started to combine these with multi-functional application processors. Its NovaThor chipset is one of the few products on the market to go head-to-head with Qualcomm's Snapdragon processor. It is the first non-Qualcomm chip to make in into the latest generation of Windows Phone handsets. The NovaThor is also used in Sony's new Xperia U and Xperia P smartphones.
The reorganization is expected to include closing major locations globally and significant layoffs. Even with the restructuring, the sale of the company is not expected to take place anytime soon. ST-Ericsson has lost a cumulative $2 billion from operations over the past three years. Potential suitors will most likely wait until the company demonstrates that it has successfully turned itself around.