So Ericsson Mobile Platforms is to be shut down, with the loss of around 1600 jobs. Not to mention billions of dollars that ST and Ericsson sunk into the joint venture in an attempt to create a competitor to Qualcomm.
The history actually goes back a bit further. Nokia originally had an internal semiconductor design group and in 2007 they decided to get out of doing their own chip design and relying on Texas Instruments and ST Microelectronics. This included transferring most of their chip designers to ST.
Then NXP, the old Philips Semiconductors, had a mobile design group, many of which were the old VLSI Technology engineers in Sophia Antipolis. They merged this group into ST but retained an ownership share, although later ST bought out this remaining share.
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