Nokia, STMicroelectronics plan deeper ties in 3G technology development

Aug 08, 2007

Nokia and STMicroelectronics today 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 Integrated Circuit (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 (radio frequency) technology and deliver complete solutions to Nokia and the open market.

At the same time, Nokia and STMicroelectronics are negotiating Nokia's IC operations transfer plan and accordingly, in order to reorganize 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 ((high-speed packet access) 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 Vice President, 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 Vice President and General Manager of ST's Mobile, Multimedia & Communications Group. "The intended IC technology transfer, with the world-class engineering skills and licensing of Nokia's world-leading 3G modem technologies, will enhance our relationship with Nokia and will improve our competitive position."

The effectiveness of the licensing agreement remains conditional on the completion of the contemplated transactions.

Source: Nokia

Explore further: Cognitive radio technology optimises use of scarce spectrum

Related Stories

US charges China academics in trade theft scheme

May 19, 2015

US prosecutors have charged six Chinese nationals, including three university professors, with a years-long scheme to steal mobile phone technology trade secrets for Beijing's benefit.

Nokia turns to Q1 profit but networks division is a concern

Apr 30, 2015

Buoyed by strong overall sales, Nokia made a net profit of 177 million euros ($195 million) in the first quarter from a loss a year earlier, but its shares plummeted more than 10 percent Thursday over a weak performance at ...

EU action on Google marks divergence with Washington

Apr 15, 2015

The EU antitrust complaint filed Wednesday against Google represents a sharp divergence with Washington, which dropped a similar investigation two years ago, citing a lack of evidence against the Internet ...

Recommended for you

Germany auctions off new mobile phone frequencies

May 27, 2015

Germany on Wednesday started an auction of frequencies for mobile phone operators, pledging that users will soon enjoy nationwide super-fast 4G coverage without "black holes" in rural areas.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.