Nokia to outsource chip manufacturing to STMicroelectronics

Finnish mobile phone leader Nokia has announced the introduction of a licensing and multisourcing model for its chipset strategy.

Under the new strategy, Nokia will work with four chipset suppliers - Texas Instruments, Broadcom, Infineon Technologies and STMicroelectronics, which will design and manufacture 3G chipsets according to Nokia technology, Nokia said in a statement.

Nokia said the move came in the face of an increasingly complex technology environment that calls for companies to focus on areas where they can add value and partner others where it makes sense.

STMicroelectronics and Nokia have also begun negotiations on the transfer of some of Nokia's integrated circuits operations to STMicroelectronics, which will see the movement of some 200 Nokia employees to STMicroelectronics during the fourth quarter of the year.