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Ericsson Takes $1.2 Billion Charge on STMicroelectronics Alliance

The mobile-phone networks company is considering options, including shutting ST-Ericsson venture down.

By Manuel Baigorri, Bloomberg | Updated on December 20, 2012

Ericsson AB said it will record an expense of 8 billion kronor ($1.2 billion) for writing off the value of its wireless-chip alliance with STMicroelectronics NV as it considers options including shutting the venture down.

The non-cash cost will be booked this quarter, Ericsson, the world’s largest maker of mobile-phone networks, said today. It won’t have tax effects. The Stockholm-based company said it won’t buy a full majority of the unit, called ST-Ericsson, after Geneva-based STMicroelectronics said it will exit the venture.

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