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.”


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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