Ericson and STMicroelectronics have announced a deal to combine Ericsson Mobile Platforms and ST-NXP Wireless into a joint venture into a single, 50-50 joint venture, with ST planning to buy the 20 percent of ST-NXP Wireless it doesn’t already own from fellow chipmaker NXP.
The companies already have the likes of Nokia, Samsung, Sony Ericsson, LG and Sharp among their customers and hopes the union will give their new spawn the size and scale it needs to take on the giants of mobile platforms and semiconductors.
With the economic gloom that’s doing the rounds at the moment, this isn’t likely to be the first major consolidation move that we’re going to see . It’s a sensible move for the two, filling out the holes in each other’s portfolios, but I can’t see Qualcomm trembling in fear at news of the union.