Ericsson and STMicroelectronics have completed the transaction to split the joint venture between the two companies, i.e., ST-Ericsson.

Effective August 2, 2013 Ericsson will be responsible for the design, development and sales of the long term evolution (LTE) multimode thin modem solutions, including 2G, 3G and 4G interoperability. Ericsson will employ about 1800 employees and contractors.

Following the split, ST will be responsible for the entity’s existing product line, other than those sold to a third party, and related business as well as a few assembly and test facilities. STMicroelectronics will employ nearly 1, 000 employees.

Both the companies will fund the expenses incurred on account of the winding down process.

Further, ST estimates that its total cash costs net of proceeds from beginning 2013 through the end of the joint venture, including the covering of ST-Ericsson’s ongoing operations during the transition period and the restructuring costs related to the exit from the joint venture, will be between $300 million to $350 million.