Nokia to sell modem business to Renesas
Renesas Electronics is to buy Nokia’s wireless modem business for $200m, taking on more than a thousand engineers working in Finland, India, the UK and Denmark. The two companies will cooperate on developing modems for HSPA+ and LTE.
The wireless modem business to be transferred to Renesas Electronics includes Nokia’s wireless modem technologies for LTE, HSPA and GSM standards as well as some of Nokia’s patents.
“The agreement with Nokia demonstrates our long-standing commitment to shape the future of advanced mobile platforms and will serve as an important step for us to become a leading mobile platform vendor in the global market,” said Yasushi Akao, president of Renesas. “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.”
“The alliance enables us to continue to focus on our own core businesses, connecting people to what matters to them with our mobile products and solutions,” said Kai Oistamo, executive vice president of Nokia.
Renesas Electronics has licensed the Nokia modem since 2009 and the two companies have been working together to develop an HSPA+/LTE platform. “I believe that the integration of the world class Nokia wireless modem into Renesas Electronics’ strong multimedia processing and RF capabilities, places Renesas Electronics in a strong position in HSPA+/LTE chipsets,” said Oistamo.
In order to implement the planned business transfer, Nokia will start the appropriate personnel consultation process with its personnel representatives according to each applicable jurisdiction’s labor law requirements. The transfer is subject to regulatory approvals and other customary closing conditions, and is estimated to take place during the fourth quarter 2010.