STMicroelectronics collaborating with NXP

STMicroelectronics collaborating with NXP

STMicroelectronics has announced that they are going to pay $1.55 billion to get 80 percent ownership in a wireless-chip venture they are creating with NXP.

The two companies are now going to combine their mobile units. The joint venture would save the companies more than $250 million a year by 2011.

Through this deal, STMicroelectronics would also get access to Samsung Electronics. Nokia is already one of their biggest customers.

STMicroelectronics Chief Executive Officer Carlo Bozotti spoke on this new development: “The strength of this venture is its excellent relationships with key customers. The joint venture’s strong positioning leads us to expect immediate and future top- and bottom-line synergies.”