Nokia announces a multi-sourcing and licensing model for its mobile phone chipset strategy
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Published:
Week 33
August 2007 -
Image Source:
Nokia
News:
Nokia has announced the introduction of a multi-sourcing and licensing model for its chipset strategy. The move means Nokia will discontinue most of its internal chipset development and expand the use of commercial chipset solutions for all tiers of mobile phone development.
Nokia will continue to develop its WCDMA/GSM modem technology internally and license the technology to its suppliers who will have the option of making the chipset available for the open market. Under the strategy Nokia has signed an agreement with STMicroelectronics to supply 3G chipsets based on Nokia’s modem technology. The agreement further includes the transfer of 200 employees from Nokia’s integrated circuit operation to STMicroelectronics in order to integrate Nokia’s existing capability in WCDMA modem and chip design.
In addition to Nokia’s agreement with STMicroelectronics for 3G chipsets, Nokia will work with three other primary chipset suppliers; Texas Instruments for all protocols, Broadcom as a supplier for EDGE chipsets and Infineon as a supplier for GSM for inclusion predominantly in entry level products. Although these vendors constitute Nokia’s leading suppliers, the strategy does not preclude partnerships with other companies for particular technologies.
