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Last modified:
  16 Mar 2008
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Nokia transfers chips to STMicro

by Tony Dennis

Nokia has reached an agreement to transfer technology and 200 personnel to STMicro. This represents STMicro's first win of a complete 3G chipset. It can now compete head on with Qualcomm and Ericsson. Nokia says it will continue to develop its modem technology, which includes protocol software and related digital designs for W-CDMA/GSM and LTE. It will then get its suppliers to make the chips. Nokia's favoured suppliers are now STMicro, Infineon, Broadcom and its old favourite – TI. Texas Instruments will continues to be a supplier of a range of modem technologies; Broadcom has been selected to supply EDGE products; Infineon Technologies will act as a supplier of GSM, and STMicro will be the favoured 3G/W-CDMA/HSPA supplier. Nokia has licensed its technology before – most notably for its Series 60 platform. But this is the first time its modem technology will be made available to direct rivals. The transfer of 200 Nokia people from Finland and the UK over to STMicro is expected to take place in Q4 2007. Meanwhile, Interdigital has decided to copy Broadcom and take a complaint to the International Trade Commission (ITC) which would prevent handsets using 3G technology, like the N95, from being sold in the USA. Interdigital says the handsets infringe its patents. "Despite our efforts to resolve 3G patent licensing matters with Nokia, we have been unable to come to an agreement,” said InterDigital's William Merritt. Which is sad really because last year [2006] the two companies settled amicably over 2G technologies. At the time said Ilkka Rahnasto, a Nokia vp for IPRhas said, "This case [resolving the 2G issues] demonstrates that legal disputes are sometimes necessary in order to lower unrealistic demands".

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