Struggling ST-Ericsson turns to new CEO - Mobile World Live

Struggling ST-Ericsson turns to new CEO

28 NOV 2011

Loss-making chipset vendor ST-Ericsson has named Didier Lamouche as its new chief executive, as the company continues its attempt to turn a profit for the first time and moves its focus to smartphone and tablet platforms.

Lamouche, currently chief operating officer of STMicroelectronics, becomes the third chief executive at ST-Ericsson since the 50/50 joint venture (STMicroelectronics and Ericsson) was established in 2009. He replaces Gilles Delfassy from December 1.

“The Company now enters a phase with prime focus on proliferating design-wins and scaling up and delivering volume, with the objective of translating its new portfolio into sustainable profitability and growth,” notes a statement from the firm. Certainly, Lamouche has a tough job ahead of him. In June ST-Ericsson pushed back a break-even target from the second quarter of 2012,without providing a new date, and the vendor is suffering as sales of older chip lines decline, while its newer smartphone and tablet chips are just getting started. Earlier this month it trumpeted a contract to supply chipsets for future devices made by Nokia using the Windows Phone system. The deal was announced at around the same time it reported a widening third-quarter loss as sales slumped 27 percent.

There has been speculation that either parent company would be keen to sell out of the loss-making venture. However, a statement from Ericsson today noted that “both parent companies, STMicroelectronics and Ericsson, are committed to the 50/50 joint venture and will continue to support its strategy towards industry leadership and sustainable financial return.”

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Justin Springham

Justin manages the editorial content for the Mobile World Live portal and award-winning Mobile World Live TV service. In the last few years Justin has launched and grown a portfolio of premier media products, which include the Mobile World Congress...

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