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Formed in 2009, the joint partnership of STMicro and Ericsson was never profitable as top customer Nokia lost market share to Apple and Samsung.
Europe's largest chipmaker announced the redundancies as part of a cost-cutting drive, but it is not yet clear from which facilities the cuts will be made.
The new flash memory company is formed with contributions from both chip heavyweights, and will begin life just as the flash memory market turns sour.
Government is taking a harder look at Intel's plans to create a private chip company with STMicroelectronics.
Two chipmakers and private equity firm Francisco Partners are creating an independent company in Switzerland.
The flash from Intel and STMicro will be the same for years, which will save everyone lots of money.
A new notebook from Samsung is using fingerprint security technology from European chipmaker STMicroelectronics. STMicro said Wednesday that its TouchChip fingerprint sensor and Protector Suite software, which provides log-on security and file encryption using a person's fingerprint as a pass key, are shipping inside Samsung's high-end GT9000 series notebooks worldwide. Samsung is one of a number of notebook makers to adopt fingerprint recognition over the past year.