Nokia and STMicroelectronics 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 agreement will enable STMicroelectronics to design and manufacture 3G chipsets based on Nokia’s modem technologies, energy management and 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.
The effectiveness of the licensing agreement remains conditional on the completion of the contemplated transactions.