Business Services Industry

Nokia to discontinue part of its chipset development

Nordic Business Report, August 8, 2007

Finnish telecomms solutions provider Nokia (NYSE: NOK) announced on Wednesday (8 August) that it is introducing a licensing and multisourcing model for its chipset strategy.

Under the renewed strategy Nokia will discontinue parts of its own chipset development and expand its use of commercially available chipsets.

Nokia said that this will allow the company to focus on its core competencies in chipset development, leverage external innovation and faster competition in the chipset industry.

Nokia will however continue to develop its modem technology, which includes protocol software and related digital design for WCDMA/GSM and its evolution.

The company will then license this modem technology to its chipset manufacturers, who will use it in the chipsets they develop and produce for Nokia and for the open market.

Based on this renewed strategy, Nokia is now working with four chipset suppliers. Texas Instruments continues to be a broad scope supplier across all protocols, Broadcom has been chosen as a supplier in EDGE, Infineon Technologies as a supplier in GSM, and STMicroelectronics as a supplier in 3G, the company said.

Nokia, headquartered in Espoo in Finland, is a global mobile phone and network equipment manufacturer. It has nearly 59,000 employees worldwide. Nokia is listed on the Helsinki, Stockholm, Frankfurt and New York stock exchanges.

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