STMicroelectronics NV, Europe’s largest semiconductor maker, said revenue and profitability will pick up as the economy improves and helps make up for business lost after a wireless venture with Ericsson AB was shut down last year.
STMicroelectronics NV will sell its stake in the unprofitable wireless-chip venture with Ericsson AB by the third quarter of next year to remove a drag on profitability at Europe’s biggest semiconductor manufacturer.
STMicroelectronics NV, Intel Corp.’s largest competitor in Europe, will spend as much as $500 million to exit its unprofitable wireless-chip venture with Ericsson AB, as demand starts to recover in other segments.
STMicroelectronics NV, Europe’s largest semiconductor maker, predicted that first-quarter revenue will fall as much as 10 percent from the previous three months because of lower sales at its wireless business.
STMicroelectronics NV fell the most in a decade in Paris trading after Chief Executive Officer Carlo Bozotti said there will be a “correction” in sales and gross margin in the third quarter because of difficulties at customer Nokia Oyj.