Ericsson gives up on modem business, with 1,000 jobs set to go


Ericsson is giving up on its modem business in order to refocus resources on small cells and other radio network research and development.

A year and a half ago, when [company]Ericsson[/company] and [company]STMicroelectronics[/company] agreed to the terms for the end of their ST-Ericsson joint venture, Ericsson chief Hans Vestberg said his company would keep the “thin modem” side of the business going, as the chips held “strategic value to the wireless industry.” Thin modems use very little power and draw their intelligence from associated mobile application processors.

Just a few months ago, the Swedish firm unveiled a $17 LTE thin modem called the M7450 (pictured above), which it pitched to manufacturers who would probably be going with Qualcomm’s rival products. This was a last-ditch attempt, though — Strategy Analytics estimated [company]Qualcomm[/company] had 92 percent of this market in 2013 and [company]Broadcom[/company], another player in this space, said in June that…

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