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April 23, 2012, 11:35 a.m.
Peter Cooney Practice Director

As I type this a presentation is about to begin covering STE's announcement today ​ regarding its new focus - Platform ICs.

A logical step no doubt, STE is one of few companies that has the product portfolio to be a platform IC supplier. It has struggled of late, that is well documented. I have followed this in previous insights:

- The Metamorphosis: ST-Ericsson Continues to Transform towards a New Lease of Life

- Has ST-Ericsson Finally Made the Transition to Higher-End Products?

It is building its new strategy on 4 key points:

1. Focus of integrated platforms for smartphones and media tablets

There have been signs of growth in STE’s platform ICs, it announced over 5 design wins at MWC for its Nova Thor platform. The design wins at Samsung, HTC, Motorola, Sharp, Nokia and Sony show that its new products are desired by OEMs, ST-Ericsson success will now hinge on these handsets (and any future design wins) seeing strong units sales.

2. Partnership with STMircroelectronics for apps processors

STM will develop the AP engine and make it available to STE under license for its platform ICs.

3. Accelerate time to market

4. Lower break-even point

Points 2-4 are very much linked. STM will take all apps processor personnel and the overall number of R&D centers will be reduced, workforce reduction of around 1700 employees, streamlining of general and administration activities - thus helping to accelerate time to market and lower break-even point.

A formal ABI insight will follow…..

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