STIMicroelectronics NV has unveiled new products to address chip demand and increase boost sales for the second half of 2013. As this part of its business increeases, it is winding down its business venture with Ericsson AB that has led to six consecutive quarters losses.
The largest European chipmaker had forecasted sales growth for the second quarter of 2013 at 7% excluding its wireless business. According to CEO Carlo Bozotti in a conference call, "Outside wireless, we've had a good trend for about 15 weeks. We are still working on understanding the sustainability of it, but so far so good. Our focus now is to grow the top line of our wireless products without ST-Ericsson."
The Geneva, Switzerland based STMicroelectronics confirmed that the demand in the wireless business did not pick up as expected. Last month, the company agreed to dissolve its four year venture with Ericsson in making chips for mobile phones. Now, the new CEO is pushing to place more of its chips in automobiles and game consoles.
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