Nokia lines up chip transfer to ST

Nokia continues to out source non-core technologies as the mobile phone giant strengthens its tie-up with STMicroelectronics and is negotiating the transfer of part of its IC operations to the chip maker.

This could involve the transfer of staff at Nokia’s research facility in Farnborough. As many as 200 staff will be affected by the transfer in Finland and the UK and it is estimated to take place during the fourth quarter 2007.

In May, Nokia sold its networks joint venture R&D centre on the Southwood site in Farnborough to US-based communications software firm Aricent.

Nokia and ST are collaborating on the licensing and supply of IC designs and modem technologies for 3G and beyond. So ST will design and manufacture 3G chipsets based on Nokia’s modem technologies, energy management and RF (radio frequency) technology.

It will also supply chipsets to Nokia and the open market.

“Nokia’s strategy will be to collaborate with its semiconductor partners for full chipset solutions,” said Niklas Savander, executive v-p, technology platforms, Nokia.

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.

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