STMicroelectronics announced today the next step in its multimedia convergence strategy. The company said that it will focus on offering a single application processing platform to serve a broad range of multimedia devices (i.e. TVs, cars, smartphones and tablets).
ST partnered with ST-Ericsson to develop future application processors. Under the terms of the agreement, ST said it will take on ST-Ericsson’s application processor development R&D activity and then license back its technology to ST-Ericsson for integration into their ModAps (competitive integrated modem plus application processor solutions) for smartphones and tablets.
“With this agreement, ST is one of very few companies to provide complete solutions based on a single application processing platform that delivers the features required by its customers and the whole ecosystem,” said Philippe Lambinet, ST’s corporate strategy officer, executive vice president and general manager of the digital sector. “By combining ST-Ericsson’s skills and deep knowledge of the smartphone and tablet business with ST’s strengths in IPs and consumer platforms, we now have capabilities that are second-to-none in mastering all of the key technologies necessary to serve the multi-screen society.”
Commenting further on the partnership, Carlo Bozotti, president and chief executive of STMicroelectronics said: “By partnering with ST-Ericsson in such a critical and R&D-intensive domain, we are able to leverage our investments over a wider range of applications and market opportunities, while capturing significant synergies benefiting both ST-Ericsson and ST. Overall, the agreement well positions ST and ST-Ericsson for future success in application processors. In addition, ST, as a shareholder of ST-Ericsson, will benefit from the joint venture’s new strategic plan and expected cost savings.”
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