Two titans in the mobile industry will combine, as Ericsson Mobile Platforms and ST-NXP Wireless have announced their plans to merge. The 50-50 joint venture, which will offer semiconductors and platforms for mobile applications, will supply Nokia, Samsung, Sony Ericsson, LG, and Sharp. Headquartered in Geneva, Switzerland, it will employ almost 8000 workers.

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The venture’s complete platform offering will include modems, multimedia, and connectivity solutions for 2G/EDGE, 3G, HSPA, and LTE technologies. It also will include all appropriate hardware, software, and support to enable handset manufacturers to develop mass-market products. Ericsson will contribute its mobile modem design and terminal architecture expertise, while ST-NXP Wireless provides experience in semiconductor development.

The companies share a top-tier and broad customer base that includes four of the industry’s top five handset manufacturers and represents almost 80% of handset shipments. Combined, the companies enjoyed pro-forma sales of $3.6 billion in 2007. The deal is a response to changes in the industry where few companies can deliver chipsets but many deliver handsets.

ST-NXP Wireless was launched as an 80/20 venture between STMicroelectronics and NXP. ST will acquire NXP’s stake before ST-NXP merges with Ericsson Mobile Platforms. The new company will be fabless, using silicon technologies and manufacturing capabilities from ST and other external providers. Carl-Henric Svanberg of Ericsson will serve as chair, and Carlo Bozotti of ST will be vice chair.

• Ericsson
• STMicroelectronics

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