ST-Ericsson to outsource handset chip production to TSMC and UMC, says paper

ST-Ericsson, the joint venture of STMicroelectronics and Ericsson, will outsource 65nm and 45nm handset chip mass production to Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), according to a Chinese-language Economic Daily News (EDN) report.

ST-Ericsson is currently one of the global top-five handset makers which saw a total of US$3.6 billion in sales in 2008 and hold US$400 million in cash. ST-Ericsson has two packaging and testing facilities, Calamba in the Philippines which was spun-off from NXP Semiconductors and Muar in Malaysia, and spin-off from STMicroelectronics, added the report.

STMicroelectronics and Ericsson completed the joint venture deal, which was originally announced on August 2008, earlier this month.