STMicro to quit chip venture

Investor's Business Daily

The Swiss-based chip maker plans to exit a money-losing wireless chip joint venture with Swedish telecom gear maker Ericsson (ERIC). STMicroelectronics (STM), Europe's No. 1 chip maker, is grappling with sagging demand for phones and other devices. The move is part of a drive to cut costs and catch up with larger, more profitable U.S. rivals. STMicro expects its exit from ST-Ericsson to be completed in Q3 '13. Its shares rose 3.4% to 6.70. Ericsson shares fell 1% to 9.79.

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