PARIS * European leaders in telecommunications and microelectronics Nokia and STMicroelectronics have expressed their intention to strengthen their collaboration on the licensing and supply of integrated circuit (IC) design and modem technologies for 3G and further generations.

In parallel, the two parties explained they are working on a plan to transfer a part of Nokia's IC operations to ST. In this sense, Nokia explained it would start the personnel consultation process required by local regulations with its personnel representatives. The transfer, due to take place in the fourth quarter of 2007, is expected to represent about 200 Nokia employees in Finland and in the United Kingdom.

As a first contribution of the acquired IC design operations, Nokia said it provided ST with a design win of an advanced 3G HSPA (high-speed packet access) chipset supporting high data rates. Nokia indicated that it would continue to develop its modem technology, which includes protocol software and related digital design for WCDMA/GSM and its evolution.

Under the multifaceted agreement, ST said it would be able to design and manufacture 3G chipsets based on Nokia's modem technology, energy management and RF technology. The Geneva-based company specified it would deliver solutions to Nokia and to the open market.

Tommi Uhari, executive vice president and general manager of ST's Mobile, Multimedia & Communications Group, commented: "The intended IC technology transfer, with the world-class engineering skills and licensing of Nokia's world-leading 3G modem technologies, will enhance our relationship with Nokia and will improve our competitive position."

The effectiveness of the licensing agreement is subject to the completion of the contemplated transactions, both partners concluded.