Semiconductor specialist STMicroelectronics is to discontinue the development of new platforms and standard products for set-top-box and home gateway, citing “significant” losses in an increasingly difficult market.
It revealed the closure as it reported its 2015 Fourth Quarter and Full Year Financial Results showing 2015 net revenues of $6.90 billion (€6.35) and net income of $104 million.
“Today we are announcing that we will discontinue the development of new platforms and standard products for set-top-box and home gateway,” said Carlo Bozotti, STMicroelectronics President and Chief Executive Officer. “This difficult decision is consistent with our strategy to only participate in sustainable businesses and is due to the significant losses posted by our set-top box business over the past years in an increasingly challenging market.”
The company said it took the decision to discontinue the development of new platforms and standard products for set-top-box and home gateway after an extensive review of external and internal options for the future of the Company’s set-top box business. “The slower than expected market adoption of leading-edge products and increasing competition on low-end boxes, combined with the required high level of R&D investment, has led this business to generate significant losses in the course of the last years,” it advised.
As a result of this, the Company announced a global workforce review, including:
Annualised savings are estimated at $170 million upon completion and restructuring costs at about $170 million.