Such is the case with ST-Ericsson, a (now) failed joint venture of STMicroelectronics and Ericsson.
The proposed key steps of agreement between the parent companies include each parent taking on parts of ST-Ericsson.
ENGADGET: ST-Ericsson joint venture begins dissolution process, 1,600 jobs gone in the process
Whether MediaTek can compete with Qualcomm and ST-Ericsson, Europe's new champion for wireless chips, remains to be seen.
ST-Ericsson is making the processors for Sailfish phones, and Jolla tapped into its network to find a local handsetmaker.
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In addition, ST-Ericsson is pursuing external options for the future of the connectivity business, which employs around 200 employees worldwide.
ENGADGET: ST-Ericsson joint venture begins dissolution process, 1,600 jobs gone in the process
The device is packing a 4-inch WVGA display, dual-core ST-Ericsson U8500 Cortex A9 CPU, 768MB of RAM and a 2, 000mAh battery.
The analyst sees this as good news for ARM, but not so good for Intel, AMD, Qualcomm, Broadcom, ST-Ericsson and Nvidia.
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ST-Ericsson was an attempt to jump-start a semiconductor business in Europe, but it actually hasn't turned a profit since forming in 2008.
ST-Ericsson's CEO will leave in March, as the parent companies of the cellphone chipmaker work on selling or shutting down the struggling joint venture.
It now appears that ST-Ericsson, a joint venture between Geneva-based STMicroelectronics and Swedish telecom equipment and services supplier Ericsson, has been admitted to the Windows Phone ecosystem.
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ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies.
ENGADGET: ST-Ericsson joint venture begins dissolution process, 1,600 jobs gone in the process
"Open source has become an engine for innovation in the smart phone and consumer electronics market, " said Teppo Hemia, vice president, 3G Multimedia Platforms Business Unit of ST-Ericsson.
In addition to ARM and IBM, four of the world's leading application processor companies, Freescale, Samsung, ST-Ericsson and Texas Instruments, will align open source engineering efforts within Linaro.
ST-Ericsson says it is collaborating with seven of the top nine handset makers on devices and expects accelerated sales of new products in the second half of the year.
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He added that ST-Ericsson would introduce the chipset in the second half of this year and that four top-tier companies in the smartphone arena, one being Nokia, had endorsed the product.
ARM, Freescale Semiconductor, IBM, Samsung, ST-Ericsson and Texas Instruments Incorporated (TI), today announced the formation of Linaro, a not-for-profit open source software engineering company dedicated to enhancing open source innovation for the next wave of always-connected, always-on computing.
Ericsson will take on the design, development and sales of the LTE multimode thin modem products, including 2G, 3G and 4G multimode, while ST will take on the existing ST-Ericsson products, other than LTE multimode thin modems, and related business as well as certain assembly and test facilities.
In connection with the transfer of the majority of its workforce to the parent companies, ST-Ericsson will carry out restructuring of its current operations which could impact some 1, 600 employees worldwide, out of which in a range of 500-700 are in Europe, including 400 to 600 positions in Sweden and 50 to 80 positions in Germany.
ENGADGET: ST-Ericsson joint venture begins dissolution process, 1,600 jobs gone in the process
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