NovaThor is no more as STMicro and Ericsson end joint venture

Yesterday, STMicroelectronics and Ericsson - creators of the NovaThor line of mobile processors - announced the end of their largely unprofitable mobile chip-making venture. The two manufacturers will divvy up the company back into their respective parts.

The split follows years of operating at a loss, in large part due to decreased orders from Nokia, a main smartphone customer that had lost much of its market share to other big-name rivals. In fact, ST-Ericsson had failed to turn a profit ever since its foundation in 2008.

The split will move some 1,800 employees under Ericsson's wing throughout Sweden, Germany, India and China, while STMicro will retain about 950 employees in France and Italy. Another 1,600 will lose their jobs.

Source