STMicro gets extra funding
STMicro has been given some extra pocket money by the European Investment Bank, following it dumping the money pit chip venture STEricsson.
It has secured a loan of $450 million, which it has said it will spend on funding research and development in its technology. This specifically relates to its Power, MEMS, Microcontrollers, Advanced Analog and products in the healthcare sector.
The research will be mainly carried out at ST's Italian sites of Agrate Brianza, Castelletto and Catania.
ST has an option for disbursement until September next year with final maturity eight years thereafter.
And despite claiming it would pay back $350 million of senior bonds, there was no more news of what would happen when its divorce from ST-Ericsson came through.
The breakdown of the venture, which was created in 2009, means that 1,600 people could be out of jobs after failing to live up to its promises. In the last quarter of 2012 it reported net sales of $358 million, along with a $133 million operating loss and a $1.5 billion write down in Q3 2012.