Date: 03/02/2009

ST Microelectronics has bought NXP's 20 % stake in ST-NXP Wireless JV with Ericsson mobile

ST Microelectronics has purchase 20% stake of wireless JV by ST Micro, Ericsson and NXP Semiconductor at a price of US$92 million The price is fixed based on the performance of ST-NXP Wireless business in the last twelve months (sales and EBITDA). The transaction is effective as per February 2, 2009.

The three semiconductor leader of Europe, ST, NXP and Infineon are trying out the best strategies to face the economic recession and more of competition from Korean and Japanese semiconductor vendors. Consolidation and focusing on core sectors is becoming the trend of the day in semiconductor industry.

Wireless IC market has a bright a future after once the industry comes out of recession, so is for this joint venture. Either 4G or WiMAX or even some other, the trasceiver IC technlogy in not much different. There is going to be huge market opportunity.