Nokia Says Single-chip Plan Not Hit by Infineon Delay
STOCKHOLM -(Dow Jones)- Nokia said Thursday its plan to use one chip for radio technology in its mobile handsets is still on track, despite news from supplier Infineon Technologies of delays.
The German chip maker Thursday said there were problems with its single-chip project with Nokia.
"Our single-chip solution is progressing according to plan," said Nokia spokesman Kari Tuutti. "We have multiple suppliers. We don't expect an impact." He said Infineon supplies Nokia with GSM single-chips for high-volume, low-end mobiles.
U.S.-based chip maker Texas Instruments is the other supplier for GSM, or global system for mobile communication, a second-generation technology mainly used now in developing countries. The chips are key for connecting a device to an operators network and making calls.
Nokia said in August it would introduce a multisource strategy regarding the pool of chipset suppliers that would allow it to better focus on other technologies besides radio technology.
Nokia is working with four suppliers including Infineon. Texas Instruments is still the supplier across all protocols, Broadcom supplies EDGE technology, while STMicroelectronics supplies 3G, or third-generation, chips, that are used in many handsets in developed markets.
At 0915 GMT, Nokia share traded down 0.5% at NOK18.11, underperforming a broadly higher Helsinki market.
-By Adam Ewing, Dow Jones Newswires; +46 8 545 130 95; adam.ewing@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 29th May 2008
