GENEVA -- STMicroelectronics ( NYSE : STM ), a global semiconductor leader serving customers across the spectrum of electronic applications, announced today its new strategic plan. The plan is the outcome of a strategic review started more than a year ago, as the company saw major changes in the dynamics of the wireless market.
"Today we are announcing the new ST, aligned with the new market environment," said Carlo Bozotti, President and CEO of ST. "Based on that, we have made the decision to exit ST-Ericsson after a transition period. We will continue to support ST-Ericsson as their supply-chain partner, advanced process-technology partner and application-processor IP provider."
"Our new strategy is centered on leadership in sense and power and automotive products, and in embedded-processing solutions," continued Bozotti. "Our specific focus is on five product areas: MEMS and sensors, smart power, automotive products, microcontrollers, and application processors including digital consumer. These families are expected to experience solid growth rates driven by secular trends and fit extremely well with our market-leading positions and competitive advantages. Our innovative products in these areas combined with our world-class technology and manufacturing, bring us even more opportunities to significantly grow and gain market share.
"The new ST will be more focused, leaner and better positioned to deliver value to our customers and our shareholders, targeting to rapidly achieve operating margins of 10 percent."