Semiconductor offerings supplier Renesas Electronics and Nokia have enhanced their collaboration by forming a strategic business alliance to develop modem technologies for HSPA+/LTE (Evolved High-Speed Packet Access / Long-Term Evolution) and its evolution.
As part of this alliance, the companies have entered into an agreement whereby Renesas Electronics is to acquire Nokia’s wireless modem business for approximately $200m. The alliance is planned to be enhanced by long-term joint research cooperation on future radio technologies.
The wireless modem business to be transferred includes Nokia’s wireless modem technologies for LTE, HSPA and GSM standards. Further, Nokia transfers Renesas Electronics certain patents related to the transferred technology asset. The planned transfer would also include approximately 1,100 Nokia R&D professionals, the vast majority of whom are located in Finland, India, the UK and Denmark.
Nokia said that this agreement will enable Renesas Electronics to deliver a complete mobile platform offering to the market; and expects to strengthen its position in the 3G and LTE market.
Yasushi Akao, president of Renesas Electronics, said: "In line with our ongoing efforts to strengthen our business structure, the transferring wireless modem technology and the innovation power and expertise of Nokia’s employees will perfectly complement our core competences and serve as the key driving forces in growing our mobile business in the global market."
