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Nokia, ST collaborate for 3G tech development

Posted: 10 Aug 2007     Print Version  Bookmark and Share

Keywords:3G chipset; integrated circuit designs; RF technology 

Nokia and STMicroelectronics have announced their intention to deepen their collaboration on the licensing and supply of integrated circuit designs and modem technologies for 3G and its evolution. The two companies also are negotiating a plan relating to transferring a part of Nokia's IC operations to STMicroelectronics.

The multifaceted agreement will enable STMicroelectronics to design and manufacture 3G chipsets based on Nokia's modem technologies, energy management and RF technology and deliver complete solutions to Nokia and the open market.

Monica de Virgiliis,general manager, Cellular and Broadband Communications Division, ST said,"Nokia modem licensing is a major industry changing move and greatly strengthens ST partnership with Nokia. We are very pleased to have been chosen by Nokia as one of the two suppliers of 3G chipsets and to have won the first chipset based on the Nokia licensed modem. The Nokia initiative will further enhance the consolidation of the mobile chipset industry."

At the same time, Nokia and STMicroelectronics are negotiating Nokia's IC operations transfer plan and accordingly, in order to reorganise and effect the planned competence transfer, Nokia will start the personnel consultation process required by local regulations with its personnel representatives. The transfer is anticipated to concern approximately 200 Nokia employees in Finland and the UK, and it is estimated to take place during the fourth quarter 2007.

Nokia has also awarded ST a design win of an advanced 3G HSPA chipset supporting high data rates, which would be the first contribution of the acquired IC design operations. This design win represents ST's first win of a complete 3G chipset.

The collaboration between Nokia and STMicroelectronics is in line with the renewal of Nokia's chipset strategy. Nokia will continue to develop its leading-edge modem technology, which includes protocol software and related digital design for WCDMA/GSM and its evolution. This modem technology will then be licensed to chipset manufacturers who will develop and produce chipsets for Nokia. These manufacturers will also be able to produce and sell to the open market chipsets based on Nokia's modem technology.

"Nokia's strategy will be to collaborate with its semiconductor partners for full chipset solutions," said Niklas Savander, Executive VP, Technology Platforms, Nokia. "We have worked with STMicroelectronics for many years and the company is a perfect partner for this expanded collaboration."

"We are excited about the possibilities that the intended IC technology transfer will bring us," said Tommi Uhari, Executive VP and General Manager of ST's Mobile, Multimedia & Communications Group. "The intended IC technology transfer, with the engineering skills and licensing of Nokia's leading 3G modem technologies, will enhance our relationship with Nokia and will improve our competitive position."

With Inputs from Dipti Agarwal, Hyderabad




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