STMicro taps Alcatel IC for GSM - Of Interest - Brief Article

Electronic News, March 4, 2002 by Richard Wilson, David Manners

STMICROELECTRONICS HAS DECIDED TO TAKE ON THE GSM/GPRS mobile phone chip development team of Alcatel as manufacturers move rapidly to lower the cost of standard chipsets for next-generation handsets. STMicro will have a standard GSM/GPRS chipset for the first time. "As the market matures, the basic engine of a mobile phone has become a commodity--even though it is still extremely complex and embodies a huge investment in know-how," said a company spokeswoman.

STMicro will also be able to use Alcatel's GSM/GPRS intellectual property in a range of chipsets it will manufacture and sell on the open market. The new digital baseband chips will be based on the ST100 DSP core, which is already used in existing Alcatel designs. "In the rapidly evolving mobile phone market, we shall see handset manufacturers such as Alcatel focusing their efforts on the integration of technologies," said Jacques Combet, director of Alcatel Mobile Phones, lathe past Alcatel has largely developed OSM silicon for its own mobile phones. As a result of this deal, STMicro will see the benefit of a long-term silicon supply agreement with the French telecom company for next-generation GSM/GPRS chipsets.