ST-Ericsson earns lower margins that competitors like Texas Instruments and has been struggling ever since its once-biggest customer Nokia has been facing intense competition in the smartphone space. The venture could be shut down completely and sold in parts to competitors like Intel, Broadcom. CEO Carlo Bozotti forecasts that the move will help them reduce operating expenses to $600-$650 million per quarter by 2014. The company also plans to increase operating margins to 10 percent.
[Reuters]
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