Ericsson AB (Nasdaq: ERIC - message board) and STMicroelectronics NV (NYSE: STM - message board) got together today to create a 50-50 joint venture company combining Ericsson's mobile platform business and STMicro's ST-NXP Wireless mobile semiconductor joint venture, a move that signals that wireless chipset companies are having to bulk up to compete. (See Ericsson, STMicro Form JV.)
The news follows STMicro's joint venture with NXP Semiconductors in April this year that created a $3 billion mobile chipset company. STMicro is now expected to buy out NXP's 20 percent stake in this joint venture before the new joint venture deal with Ericsson closes.
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