Ericsson ( ERIC ) and STMicroelectronics ( STM ) have agreed to dissolve their ST-Ericsson joint venture, calling it quits on the effort to establish a competitive European semiconductor supplier for the wireless industry. The dissolution of ST-Ericsson will result in 1,600 layoffs. Last spring, ST-Ericsson cut about 1,700 jobs and said it would narrow its focus to integrated modem plus application processor (ModAp) solutions for smartphones and tablets. ST-Ericsson lost almost a billion dollars last year, hurt by cuts at Nokia, one of its biggest customers, and by Ericsson's retreat from the handset business. STMicroelectronics announced late last year that it would abandon the venture, and since that time Ericsson has been evaluating its options. In a January interview, Ericsson CFO Jan Frykhammer told RCR Wireless News that Ericsson values the venture's modem business.