Ericsson and STMicroelectronics form chip venture

Ericsson, the maker of wireless networks, and STMicroelectronics, the European chip maker, said Wednesday that they would combine some mobile-communications units to collaborate on research and design of chips and networks. The partnership aims to accelerate the introduction of faster wireless applications as more consumers use mobile devices to access the Internet and download files. The combined units had $3.6 billion in revenue last year and will employ almost 8,000 people, the companies said in a joint statement. The venture will acquire assets from the parent companies, and will then have about $400 million in cash. The businesses being combined are major suppliers to four of the industry's top five handset manufacturers, who together represent almost 80 percent of handset shipments. Today in Business with... [read full story]