News Column

Ericsson Takes $1.2 billion Charge for Semi-conductor Maker

Dec. 20, 2012

Swedish telecommunications equipment maker Ericsson on Thursday said it would take a 8-billion-kronor (1.2-billion-dollar) writedown over joint venture ST-Ericsson, which makes semi-conductors.

The costs would be charged to the fourth quarter, Ericsson said. The sum included a writedown of assets and 3 billion kronors needed to implement "strategic options" for the joint venture that was set up in 2009.

Ericsson said it had also decided not to take full ownership of the semi-conductor maker.

Earlier this month, ST Microelectronics that owns the other 50 per cent stake in ST-Ericsson said it planned to sell its stake in the chip maker.

Ericsson shares dipped about 2.4 per cent on the Stockholm bourse on the news.

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Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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