Thursday, 9 August 2007

Nokia Ceases Inhouse Chip Development

Nokia, the world’s top mobilephones maker has decided to cease inhouse chip manufacturing and instead will outsource them from new vendors.

The Espoo, Finland-based manufacturer said this move would help it to concentrate on developing more complex chips needed for its advanced multimedia, internet-enabled handsets.

After this move, Nokia will use chips from four other makers namely Texas Instruments, Broadcom, Infineon Technologies and STMicroelectronics.

In a separate move, Nokia also said it will license its modem technology thus generating additional revenues. Meanwhile in a separate deal, Nokia will transfer 200 engineers to French-Italian chipmaker ST Microelectronics who will work on the chips.