|2G/3G ASICs and ASSPs: ST (NXP) Ericsson Wireless|
Creating the Worlds 3rd Largest Wireless IC Manufacturer
... and a Pan-European power to rival and compete with Qualcomm and TI of the USA.
ST-NXP (Ericsson) Wireless Website ...
I. Key Events Chronology:
• 7/30/2003: The Mobile Industry Processor Interface (MIPI) Alliance, a new industry initiative was established to define and promote open standards for interfaces to mobile application processors, was announced by founding members ARM, Nokia, STMicroelectronics and Texas Instruments. Ericsson Mobile Platforms, Sony Ericsson Mobile, Symbian and many others joined MIPI later in 2003. NXP, Intel, Motorola, and Samsung serve on the board with Nokia, ST, and TI. The MIPI Alliance was a response to the broad interest in the OMAPI standard launched by ST and TI in December 2002.
• September 28, 2004 Nokia and STMicro announced they have expanded their cooperation into the area of Symbian Series 60 product creation. ST's Nomadik family of multimedia application processors for 3G mobile devices have been adapted and optimized to support the Nokia Symbian Series 60 Platform.
• December 14,2006: STMicro announced that it signed an agreement with Ericsson Mobile Platforms (EMP) to supply third-generation (3G) W-CDMA digital baseband processors to OEMs that are licensees of Ericsson Mobile Platforms’ leading-edge 3G mobile-phone technology and that the digital baseband processor chips have already been delivered to selected customers. In 2007 commercial handsets using custom EMP baseband ASSP's by STMicro started delivering, supplementing custom ASSP's manufactured for EMP by TI and creating a dual source of supply for EMP.
• February 20th, 2007: STMicro won a contract to supply multimedia chips (Nomadik applications processors) to Nokia and the 1st Nomadik A-processor for Nokia started shipping in the high end N96 in September 2008.
• August 08, 2007: As part of Nokia's new multisource silicon supply strategy Nokia and STMicro announced an agreement to enable STMicro to design and manufacture (along with TI) 3G chipsets based on Nokia's modem technologies, energy management and RF (radio frequency) technology and deliver complete solutions to Nokia and the open market. The two companies are negotiating a plan relating to transferring a part (~200 of 400 ASIC design engineers) of Nokia's Integrated Circuit (IC) operations in the UK and Finland to STMicroelectronics.
• November 5, 2007: Nokia and STMicroannounced the closing of their deal, announced on August 8th, to deepen their collaboration on the licensing and supply of integrated circuit designs and modem technologies for 3G and its evolution. Closing the agreement transferred approximately 185 highly-skilled engineers and other Nokia personnel in Finland and UK from Nokia's Integrated Circuit (IC) operations to STMicroelectronics to design and manufacture 3G chipsets based on Nokia's modem technologies, energy management and RF (radio frequency) technology and to deliver complete solutions to Nokia and the open market. Nokia also awarded ST a design win of an advanced 3G HSPA (high-speed packet access) chipset supporting high data rates that represents ST's first complete 3G chipset (not just baseband as in the EMP deal).
• April 10, 2008: NXP -- the independent semiconductor company founded by Philips -- and STMicroelectronics announced their agreement to spin off and combine key wireless operations to form a joint-venture company with strong relationships with all major handset manufacturers.
June 24, 2008: Nokia announced it has launched a cash offer to acquire all of the shares of Symbian Limited to purchase the approximately 52% of Symbian Limited shares it does not already own from LM Ericsson and Sony Ericsson as well as Panasonic Mobile Communications, Siemens and Samsung Electronics, essentially freeing up Ericsson EMP to focus on 2G/3G chipset hardware manufacture with STMicro and NXP and they focus on 2G/3G software platforms and firmware.
• June 24, 2008: Mobile leaders Nokia, Sony Ericsson, Motorola and NTT DOCOMO agree to unify the Symbian Software Platform and along with AT&T, LG Electronics, Samsung Electronics, STMicroelectronics, Texas Instruments and Vodafone agree to establish the Symbian Foundation.
• July 28, 2008: NXP and STMicro announced the closing of the deal bringing together key wireless operations of both companies into ST-NXP Wireless, a deal they announced on April 10th, 2008.
• August 20, 2008: STMicro and Ericsson announced an agreement to merge Ericsson Mobile Platforms (EMP) and ST-NXP Wireless into a joint venture. The 50/50 joint venture will have the one of industry’s strongest product offering in semiconductors and platforms for mobile applications and will be an important supplier to Nokia, Samsung, Sony Ericsson, LG and Sharp. The fabless joint venture will employ almost 8,000 people with pro-forma 2007 sales of USD 3.6B. ST is expected to exercise its option to buy NXP’s 20 percent of ST-NXP Wireless before the closing of this transaction.
II. Press Releases: Reverse Chronology
>> Ericsson and STMicroelectronics to Create World Leader in Semiconductors and Platforms for Mobile Applications
STMicro and Ericsson
Geneva and Stockholm
August 20, 2008
STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC) today announced an agreement to merge Ericsson Mobile Platforms and ST-NXP Wireless into a joint venture. The 50/50 joint venture will have the industry’s strongest product offering in semiconductors and platforms for mobile applications and will be an important supplier to Nokia, Samsung, Sony Ericsson, LG and Sharp. The fabless joint venture will employ almost 8,000 people with pro-forma 2007 sales of USD 3.6B. ST is expected to exercise its option to buy NXP’s 20 percent of ST-NXP Wireless before the closing of this transaction.
In the joint venture, ST contributes its industry-leading multimedia and connectivity solutions as well as a complete world-class 2G/EDGE platform and strong 3G offering, including customer relationships with Nokia, Samsung, and Sony Ericsson. Ericsson contributes its industry-leading 3G and LTE platform technology as well as customer relationships with Sony Ericsson, LG and Sharp. The joint venture, staffed by proven professionals across all functional areas, is designed for long-term stability in its original structure, and is set to become an industry leader in product research, as well as design, development, and the creation of cutting-edge mobile platforms and wireless semiconductors.
In a business where scale matters, the complementary product portfolios contributed by the parent companies will deliver significant scale and synergies by leveraging and expanding the existing strategic cooperation between Ericsson Mobile Platforms and ST-NXP Wireless.
“By combining the complementary strengths and product offerings of Ericsson and ST in platforms and semiconductors the joint venture is well positioned to become a world leader,” said Carl-Henric Svanberg, President and CEO of Ericsson. “The industry continues to develop at a swift pace and customers see benefits from our broad offering. This partnership is a perfect fit and secures a complete offering, as well as the necessary scale for technology leadership.”
“ST is taking another bold step. By combining two industry-leading operations, we will create a world leader in mobile platforms and semiconductor solutions with even stronger capabilities to create customer value and continue to deliver rapid innovation,” said Carlo Bozotti, President and CEO of ST. “In April, we announced a plan to join wireless resources with NXP to strengthen our wireless business and enhance our leadership position in a sector which we have targeted for strong organic and external growth and substantial expansion of financial returns. Now, we’ve expanded our ambitions and will be even better positioned to meet our opportunities.”
Frans van Houten, CEO of NXP, said: “We understand the desire of ST to call our 20 percent stake in order to expand the ST-NXP Wireless joint venture with Ericsson. We support this next step that Ericsson and ST are taking to create the global leader in wireless semiconductors. To help ensure the success of the joint venture going forward all NXP’s supply and support agreements will continue as planned. The additional proceeds of the 20 percent stake will enable NXP to further build leadership positions through innovation and investment in NXP's core businesses.”
The joint venture's top-tier and broad customer base will also benefit from a tighter relationship that follows from the success of the existing cooperation between ST and Ericsson. The businesses being combined are major suppliers to four of the industry’s top five handset manufacturers, who together represent almost 80 percent of handset shipments, as well as to other exciting industry leaders.
The joint venture will rely on its complete platform offering, which will include modems, multimedia and connectivity solutions for 2G/EDGE, 3G, HSPA and LTE technologies. It will also include all appropriate hardware, software and support to enable handset manufacturers to develop mass-market products. Ericsson Mobile Platforms has state-of-the-art mobile modem design and mobile terminal architecture expertise and ST-NXP Wireless brings vast experience in wireless semiconductor development, including an industry-leading ASIC, ASSP, Application Processor and connectivity portfolio and hardware assembly and testing.
The business in the 50/50 joint venture will be led by a development and marketing company with approximately 7,000 people employed. This company will be consolidated by ST and Ericsson will account for it using the equity method. A separate platform design company, with approximately 1,000 people employed, will provide platform designs to the development and marketing company. Ericsson will consolidate this company and ST will account for it using the equity method. Of the almost 8,000 people employed, almost 5,000 will be from ST-NXP Wireless and roughly 3,000 will be from Ericsson Mobile Platforms. The new company will be fabless and will use silicon technologies and manufacturing capabilities from ST and other external providers.
The joint venture will be headquartered in Geneva, Switzerland and governance will be balanced. Each parent will appoint four directors to the board and Ericsson will designate Carl-Henric Svanberg as the Chairman of the Board while ST will appoint Carlo Bozotti as the Vice Chairman. In addition, ST will designate the Chief Executive Officer and Ericsson will appoint the Executive Vice President to the company. An integration management team, led by Alain Dutheil, has already been selected.
The joint venture will acquire relevant assets from the parent companies. After these acquisitions the joint venture will have a cash position of about USD 0.4B. Ericsson will contribute USD 1.1B net to the joint venture, out of which USD 0.7B will be paid by the joint venture to ST. The joint venture is subject to ordinary regulatory approvals.
As ST-NXP Wireless was launched as an 80-20 venture between STMicroelectronics and NXP, ST will acquire the remaining shares under the terms already agreed with NXP. The value of the 20 percent stake will be a function of the last twelve months (LTM) performance of the ST-NXP Wireless joint venture at the exercise of the call, which is expected to take place before the closing of the transaction between ST and Ericsson.
On September 1, 2001, Ericsson formed Ericsson Mobile Platforms to offer 2.5G and 3G platforms to manufacturers of mobile phones and other wireless devices, based on Ericsson’s global standardization leadership and the world’s strongest intellectual property rights portfolio for 2.5G and 3G mobile phone systems. The rationale for the new company was the transformation of the handset industry where few companies would be able to deliver chip-sets, but many to deliver handsets. Ericsson Mobile Platforms is the supplier of 3G and HSPA platforms to Sony Ericsson, LG and Sharp. The unit is headquartered in Lund, Sweden and is a part of Business Unit Multimedia within the Ericsson Group.
ST-NXP Wireless began operations on August 2 and the new entity is a global provider of platform solutions and ICs for wireless communications, offering leading-edge capabilities in 2G, 2.5G (GPRS), 2.75G (EDGE), 3G, LTE, multimedia, and connectivity. Nearly three-quarters of the company’s sales are in product categories in which ST-NXP Wireless is the market leader and its strong position in TD-SCDMA established the new company with a solid foundation in the rapidly growing China market. The joint venture has been created from successful businesses that generated USD 3B in revenue in 2007 and which has produced thousands of important communication and multimedia patents.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction while Morgan Stanley and UBS are acting as financial advisors, respectively, to ST and its Supervisory Board.
About Ericsson: Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 195 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices. Ericsson is advancing its vision of "communication for all" through innovation, technology and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ. For more information, visit ericsson.com or ericsson.mobi ...
STAbout STMicroelectronics: STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2007, the Company's net revenues were $10 billion. Further information on ST can be found at st.com ###
>> STMicroelectronics and NXP Complete Deal to Create New Wireless Semiconductor Company
Strong top-three player will enter the wireless market with a complete product portfolio, world-class R&D and impressive customer base
STMicroelectronics and NXP
Eindhoven, The Netherlands
July 28, 2008
NXP—the independent semiconductor company founded by Philips—and STMicroelectronics (NYSE:STM), a leader in delivering advanced silicon solutions for mobile products, today announced the closing of the deal bringing together key wireless operations of both companies into ST-NXP Wireless, a deal they announced on April 10th, 2008. The joint venture, which will start operations on August 2nd, launches as a solid top-three industry player with a complete wireless product and technology portfolio and as a leading supplier to major handset manufacturers who together ship more than 80% of all handsets. ST-NXP Wireless will be among the few companies with the R&D scale and expertise to meet customer needs in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies.
ST-NXP Wireless is being created from successful businesses that together generated $3 billion in revenue in 2007. At the closing, STMicroelectronics took an 80% stake in the joint venture and contributed $1.55 billion to NXP, including a control premium. The new organization will start with a cash balance of about $350 million, in a very healthy financial position and able to grow its business with all of its wireless customers.
“The wireless industry is undergoing a major change. Semiconductor companies are coming to play an ever more important role, contributing an ever larger share of the product value chain to handset makers, who expect us to deliver leading-edge solutions across the full spectrum of mobile applications,” said Alain Dutheil, Chief Executive Officer of ST-NXP Wireless. “ST-NXP Wireless is being created to address this new paradigm; we’ll be equipped with a world-class product and technology portfolio and top-league R&D capabilities to compete for leadership in the wireless and mobile-multimedia market.”
Owning thousands of important communication and multimedia patents, ST-NXP Wireless will be well positioned with all of the vital technologies for UMTS (Universal Mobile Telecommunication System); for the emerging TD-SCDMA standard; as well as other cellular, multimedia and connectivity capabilities - including WiFi, Bluetooth, GPS, FM Radio, USB, and UWB (Ultra-wideband), and full access to a license from NXP to NFC (Near Field Communication) - to effectively serve its global customers with complete wireless and mobile solutions across the spectrum of applications.
The ST-NXP Wireless executive team will be composed of experienced industry leaders from both parent companies. Alain Dutheil, presently Chief Operating Officer of STMicroelectronics, has been assigned to lead ST-NXP Wireless as Chief Executive Officer, focusing exclusively on the new joint-venture. The Executive Committee of ST-NXP Wireless, led by Dutheil, also includes Abhijit Bhattacharya, currently financial controller for NXP’s Multimarket Semiconductors Business Unit, who has been nominated to take the position of Chief Financial Officer and, nominated as executive vice presidents and general managers, Tommi Uhari, currently executive vice president and general manager of ST’s Mobile, Multimedia & Communications Group, and Marc Cetto, currently executive vice president and general manager of NXP’s Mobile & Personal Business Unit.
ST-NXP Wireless will combine key design, sales and marketing, and back-end manufacturing assets from both parent companies into a streamlined organisation. The company is designed with low capital intensity, securing leading-edge wafer manufacturing capacity from both parent companies and foundries, while operating its own assembly and test facilities.
To be incorporated in Switzerland and headquartered in Geneva, ST-NXP Wireless will have in excess of 7,500 employees with major facilities in Belgium, China, Finland, France, Germany, India, Italy, Malaysia, Morocco, the Netherlands, Philippines, Singapore, Sweden, Switzerland, UK and the USA.
Note to Editors: According to iSuppli, a market research firm, the global handset market was 1.15 billion units in 2007 and is forecasted to grow at about an 8% compound annual growth rate through 2011. The handset semiconductor market represented 14% of the global semiconductor TAM in 2007, making up the second largest segment of the industry.
About NXP: NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of USD 6.3 billion in 2007. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at nxp.com .
>> STMicroelectronics and NXP Merge Wireless Businesses to Expand Product Breadth and Boost Innovation
Combining complementary organizations and portfolios will improve competitiveness, speed product development and strengthen R&D Scale
STMicroelectronics and NXP
Eindhoven, The Netherlands
April 10, 2008
NXP -- the independent semiconductor company founded by Philips -- and STMicroelectronics (NYSE:STM), a leader in delivering advanced solutions for mobile products, today announced their agreement to combine key wireless operations to form a joint-venture company with strong relationships with all major handset manufacturers. The new company will have the scale to better meet customer needs in 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies. The combined venture will be created from successful businesses that together generated $3B in revenue in 2007 and will own thousands of important communication and multimedia patents. The new company will be a solid top-three industry player and among the few companies with the scale and expertise to pursue the R&D investments necessary to establish itself as a leading player in the wireless and mobile-multimedia market.
The new organization will combine key design, sales and marketing, and back-end manufacturing assets from both companies into a streamlined worldwide joint venture that will rely on its parent companies and foundries for wafer fabrication services. This new leading player will be well positioned with all of the vital technologies for UMTS (Universal Mobile Telecommunication System); for the emerging 3G Chinese standard; as well as other cellular, multimedia and connectivity capabilities, including WiFi, Bluetooth, GPS, FM Radio, USB, and UWB (Ultra-wideband), to effectively serve its global customers with complete wireless and mobile solutions across the spectrum of applications. The JV will also integrate the Silicon Laboratories- wireless and GloNav-s GPS operations recently acquired by NXP.
"The strength of this venture is its excellent relationships with key customers, as well as the complementary IP and product portfolios transferred from ST and NXP that create a rich and broad offering with the capability to deliver leading-edge innovations to the market," said Carlo Bozotti, President and CEO of STMicroelectronics. "The JV-s strong positioning leads us to expect immediate and future top- and bottom-line synergies for the exciting new enterprise and establishes a powerful foundation to build on its parents- 2G, 2.5G, 3G, multimedia and connectivity efforts. This combination will form the basis of the success of the new venture."
"The wireless semiconductor industry requires huge investments in new technology and innovative product roadmaps. This move will see two strong players propelling themselves into a leadership position," commented Frans van Houten, President and CEO of NXP. "By creating this joint venture, we put most of the competitors at a distance. Together we will accelerate innovation which we anticipate will contribute to market share gains and improved financial performance."
Both parent companies contribute strong businesses generating comparable revenue - each with 2007 operating profit of approximately $100 million. In order to create a clear ownership structure, STMicroelectronics will take an 80% stake in the joint venture. NXP will receive $1.55 billion from ST, including a control premium, to be funded from outstanding cash (cash and cash equivalents balance for ST at year end 2007 were $3.5 billion). The new organization is designed to be in a very healthy financial position, without debt, and able to grow its business with all of the leading cellular handset manufacturers. The parents have also agreed on a future exit mechanism for NXP-s ongoing 20% stake, which involves put and call options, exercisable beginning 3 years from the formation of the JV, at a strike price based on actual future financial results, with a 15% spread.
The new company will be incorporated in the Netherlands and headquartered in Switzerland with approximately 9,000 employees worldwide. These people, almost equally contributed by ST and NXP, will be in position to serve the JV-s large and demanding global customer base. Not owning any wafer fabs, the joint venture is designed with low capital intensity, while having access to secure leading-edge manufacturing capacity from both parent companies and foundries; and will operate its own very competitive assembly and test facilities in Calamba, Philippines and Muar, Malaysia. NXP-s Calamba site as a whole will be transferred to the JV. In addition, part of ST-s back-end operations in Muar will be separated from the parent company-s existing facility in the area and transferred to the JV. The new company will also benefit from a dedicated worldwide sales and customer support team.
The Joint Venture will be governed by a board of Directors on which both Carlo Bozotti and Frans van Houten will participate, looking after the best interest of its customers and the success of the JV. Aiming for a closing in Q3 of this year, the deal is subject to regulatory approvals and labor council consultations.
The parent companies expect over $250 million in annual cost synergies from the JV by 2011. In financial impact, ST expects the transaction to be accretive to its non-GAAP cash EPS in 2009.
Commenting on the impact to NXP, Frans van Houten said, "This deal transforms the portfolio of NXP and strengthens our cash position. We will continue to pursue building leadership positions through innovation and investment in our remaining focus areas: Multimarket Semiconductors, Automotive, Identification and Home electronics."
"This transaction strengthens our wireless business and enhances our leadership position in an important market segment we have targeted for expansion and external growth," added Carlo Bozotti. "Coupled with our recent deconsolidation of Flash memory, it further proves our execution in reshaping ST-s product portfolio towards value and leadership. This, together with our recently announced decisions on distribution to shareholders, demonstrates our commitment to improving shareholder value."
According to iSuppli, a market research firm, the global handset market was 1.15 billion units in 2007 and is forecasted to grow at about an 8% compound annual growth rate through 2011. The handset semiconductor market represented 14% of the global semiconductor TAM in 2007, making up the second largest segment of the industry.
"The wireless semiconductor industry requires consolidation," said Jean-Francois Baril, senior vice president of sourcing and procurement with Nokia. "We welcome the emergence of this joint venture creating a strong player serving the top mobile phone manufacturers, understanding the needs of these customers and providing the required speed of innovation." ###
>> Nokia to Acquire Symbian Limited To Enable Evolution Of The Leading Open Mobile Platform
Visionary move embraces openness and accelerates innovation
June 24, 2008
Nokia today announced it has launched a cash offer to acquire all of the shares of Symbian Limited that Nokia does not already own, at a price of EUR 3.647 per share. The net cash outlay from Nokia to purchase the approximately 52% of Symbian Limited shares it does not already own will be approximately EUR 264 million.
Nokia has received irrevocable undertakings from Sony Ericsson Mobile Communications AB, Telefonaktiebolaget LM Ericsson, Panasonic Mobile Communications Co. Ltd. and Siemens International Holding BV to accept the offer, representing approximately 91% of the Symbian shares subject to the offer. Nokia also expects Samsung Electronics Co. Ltd. to accept the offer.
The acquisition is a fundamental step in the establishment of the Symbian Foundation, announced today by Nokia, together with AT&T, LG Electronics, Motorola, NTT DOCOMO, Samsung, Sony Ericsson, STMicroelectronics, Texas Instruments and Vodafone. More information about the planned foundation can be found at www.symbianfoundation.org.
"This is a significant milestone in our software strategy" said Olli-Pekka Kallasvuo, CEO of Nokia. "Symbian is already the leading open platform for mobile devices. Through this acquisition and the establishment of the Symbian Foundation, it will undisputedly be the most attractive platform for mobile innovation. This will drive the development of new and compelling, web-enabled applications to delight a new generation of consumers."
"The wide support for this initiative, uniting the industry around the Symbian platform, reflects the strong gravitational pull it has for application developers and other ecosystem players. We will drive efficient, open innovation by unifying the platform and simplifying the software supply chain, leveraging our experience from mobile devices. Nokia is strongly positioned to realize the benefits of open innovation, as well as accelerating time to market, enabling us to meet and exceed consumer expectations for leading converged devices and experiences", Kallasvuo continued.
Symbian Limited is the software company that develops and licenses Symbian OS, the market-leading open operating system for mobile devices. User interfaces designed for Symbian OS include S60 from Nokia, MOAP (S) for the 3G network and UIQ, designed by UIQ Technology, a joint venture between Motorola and Sony Ericsson. A privately-owned company established in 1998, Symbian has its headquarters in London, UK and other offices in the United Kingdom, United States and Asia (Bangalore, Beijing, Seoul and Tokyo).
"Ten years ago, Symbian was established by far sighted players to offer an advanced open operating system and software skills to the whole mobile industry", said Nigel Clifford, CEO of Symbian. "Our vision is to become the most widely used software platform on the planet and indeed today Symbian OS leads its market by any measure. Today's announcement is a bold new step to achieve that vision by embracing a complete and proven platform, offered in an open way, designed to stimulate innovation, which is at the heart of everything we do."
Mobile devices based on Symbian OS account for 60% of the converged mobile device segment (source: Canalys, 12 months to Q1 2008). Symbian OS represented approximately 7% of all mobile device sales in 2007, up from 5% in 2006 (source: Strategy Analytics). To date, more than 200 million Symbian OS based phones have been shipped, over 235 models, from 8 vendors and on more than 250 mobile networks around the world. More than 4 million developers are engaged in producing applications for Symbian devices.
Nokia expects the acquisition to be completed during the fourth quarter of 2008 and is subject to regulatory approval and customary closing conditions. On a reported basis, Nokia expects the transaction to be dilutive in 2009, approximately breakeven in 2010, and accretive in 2011. On a cash basis, Nokia expects the transaction to be dilutive in 2009 and accretive in 2010 and 2011. After the closing, all Symbian employees will become Nokia employees. ###
>> Mobile Leaders To Unify The Symbian Software Platform And Set The Future Of Mobile Free
Foundation to be established to provide royalty-free open platform and accelerate innovation
June 24, 2008
Nokia, Sony Ericsson, Motorola and NTT DOCOMO announced today their intent to unite Symbian OS, S60, UIQ and MOAP(S) to create one open mobile software platform. Together with AT&T, LG Electronics, Samsung Electronics, STMicroelectronics, Texas Instruments and Vodafone they plan to establish the Symbian Foundation to extend the appeal of this unified software platform. Membership of this non-profit Foundation will be open to all organizations. This initiative is supported by current shareholders and management of Symbian Limited, who have been actively involved in its development. Plans for the Foundation have already received wide support from other industry leaders.
To enable the Foundation, Nokia today announced plans to acquire the remaining shares of Symbian Limited that Nokia does not already own and then contribute the Symbian and S60 software to the Foundation. Sony Ericsson and Motorola today announced their intention to contribute technology from UIQ and DOCOMO has also indicated its willingness to contribute its MOAP(S) assets. From these contributions, the Foundation will provide a unified platform with common UI framework. A full platform will be available for all Foundation members under a royalty-free license, from the Foundation's first day of operations.
Contributions from Foundation members through open collaboration will be integrated to further enhance the platform. The Foundation will make selected components available as open source at launch. It will then work to establish the most complete mobile software offering available in open source. This will be made available over the next two years and is intended to be released under Eclipse Public License (EPL) 1.0.
The Foundation's platform will build on the leading open mobile software platform, with more than 200 million phones, across 235 models, already shipped by multiple vendors and tens of thousands of third-party applications already available for Symbian OS-based devices.
"Ten years ago, Symbian was established by far sighted players to offer an advanced open operating system and software skills to the whole mobile industry", said Nigel Clifford, CEO of Symbian. "Our vision is to become the most widely used software platform on the planet and indeed today Symbian OS leads its market by any measure. Today's announcement is a bold new step to achieve that vision by embracing a complete and proven platform, offered in an open way, designed to stimulate innovation which is at the heart of everything we do."
"Establishing the Foundation is one of the biggest contributions to an open community ever made," said Olli-Pekka Kallasvuo, CEO of Nokia. "Nokia is a strong supporter of open platforms and technologies as they give the freedom to build, maintain and evolve applications and services across device segments and offer by far the largest ecosystem, enabling rapid innovation. Today's announcement is a major milestone in our devices software strategy."
"The complete, consistent platform that the Foundation plans to provide will allow manufacturers to focus on their unique differentiation at a device level" said Dick Komiyama, President of Sony Ericsson. "Sony Ericsson believes that the unified Symbian Foundation platform will greatly simplify the world for handset manufacturers, operators and developers, enabling greater innovation in services and applications to the benefit of consumers everywhere."
"Motorola has long been a leader and advocate of open software for mobile platforms. We're excited to be joining Nokia, Sony Ericsson, NTT DOCOMO and others in leading this open source effort to form the new Symbian Foundation and unite the Symbian ecosystem," said Alain Mutricy, Senior Vice President, Platforms & Technology Office, Motorola Mobile Devices. "Also, Motorola, together with Sony Ericsson, will be contributing UIQ technology to the Foundation and will work with UIQ as they are refocusing as an important supplier in the new Symbian ecosystem. This will be a great addition, as the Foundation will be able to leverage UIQ's unique experience, which includes expertise in touch technology."
"DOCOMO welcomes this development and we look forward to moving our Symbian based devices and service onto the Foundation platform. We are also willing to contribute our MOAP(S) assets to the Foundation. This is a very positive step in further increasing the adoption of the Symbian software and creating an even more open, consistent and complete platform. The Foundation software will enable us to enjoy the benefits of a global platform in bringing new, leading-edge services to the Japanese market. It will increase efficiency and help us provide our wide customer base with the most advanced mobile experiences." said Toshio Miki, Associate Senior Vice President, Managing Director of Communication Device Development Department of NTT DOCOMO.
"Mobile phones have turned into sophisticated multimedia computers and smart phones continue to grow in popularity," said Kris Rinne, Senior Vice President of Architecture and Planning at AT&T. "The Symbian Foundation will reduce fragmentation in the industry and holds the promise of incorporating leading technology and the most mature software into a unified platform for the entire industry. This will create an environment that will encourage and enable developers to build compelling applications that will positively affect our customers' lives and support AT&T in offering its differentiated services to consumers."
"Joining the Symbian Foundation is an ideal opportunity for LG to broaden our commitment to providing our customers with the best possible mobile experience" said Dr. Skott Ahn, President and CEO of LG Electronics Mobile Communications Company. "We believe that open mobile platforms will contribute to advance the mobile industry. At LG we will play a leading role in creating a better mobile environment, working with the Symbian Foundation to provide our customers with smart new features based on this open platform."
"Samsung Electronics is committed to Symbian as one of the future platforms for our mobile devices and believes that establishing the Foundation is a visionary move in positioning the platform as a proven open platform for future development. We are delighted to be playing a significant role in that future by joining the Foundation board. We have already used Symbian and S60 software successfully to deliver appealing devices and see these steps making the platform even more attractive for bringing the latest technologies and services to the market" said Dr. Do Hun Kwon, VP & Managing Director, Samsung Electronics Research Institute.
"ST sees strong consumer demand, across all segments, for a richer multimedia experience," said Monica de Virgiliis, General Manager of the Wireless Multimedia Division, STMicroelectronics. "This new foundation synchronizes and harmonizes the mainstream software approach to address this need and makes the software widely available. We anticipate this will fuel the growth of multimedia-capable devices and we are excited about being able to leverage our long-standing leadership in consumer digital multimedia to satisfy more and more consumers."
"TI has long supported open platforms, and we are excited about the formation of the Symbian Foundation. We believe the new structure will remove barriers to innovation in the mobile industry by providing a common platform on which exciting next-generation applications and services can be built," said Greg Delagi, senior vice president of TI's Wireless Business Unit. "Manufacturers can get a head-start on development with TI's proven OMAP-based Symbian S60 software development platform. Combined with the Foundation's open collaboration model, this will allow more developers to harness the performance and multimedia capabilities of the OMAP family to accelerate improvements in the mobile user experience."
"Vodafone believes this is a significant step in driving mobile innovation for the Internet as well as creating a richer mobile experience for our customers" said Jens Schulte-Bockum, Vodafone's Global Director of Terminals. "We have been challenging the industry to reduce complexity and focus on fewer operating systems. This step will help to drive even faster innovation, as well as enable operators to accelerate time-to-market for compelling and varied new services."
Foundation members share the vision that the Foundation will unify the software platform, supercharge innovation and accelerate the availability of new services and compelling experiences for consumers and business users around the world. The combined platform is already one of the most advanced and widely used mobile platforms, making it highly attractive for all ecosystem partners, including developers, mobile operators, content and service providers and device manufacturers.
The Foundation is expected to start operating during the first half of 2009, subject to the closing of the acquisition of Symbian Ltd by Nokia. ###
>> Nokia and STMicroelectronics close the agreement in 3G chipset development
Nokia and STMicro
Espoo, Finland and Geneva, Switzerland
November 5, 2007
Nokia (NYSE: NOK) and STMicroelectronics (NYSE:STM) today announced the closing of their deal, announced on August 8th, to deepen their collaboration on the licensing and supply of integrated circuit designs and modem technologies for 3G and its evolution.
The closing of the multifaceted agreement transfers a core part of Nokia's Integrated Circuit (IC) operations to STMicroelectronics and positions ST to design and manufacture 3G chipsets based on Nokia's modem technologies, energy management and RF (radio frequency) technology and to deliver complete solutions to Nokia and the open market. The agreement includes the transfer of approximately 185 highly-skilled engineers and other Nokia personnel in Finland and UK to STMicroelectronics. The transfer has been subject to a personnel consultation process required by local regulations. As part of the arrangement, Nokia has awarded ST a design win of an advanced 3G HSPA (high-speed packet access) chipset supporting high data rates. This design win represents ST's first complete 3G chipset.
>> Nokia and STMicroelectronics Plan Deeper Ties in 3G Technology Development
Nokia and STMicro
Espoo, Finland and Geneva, Switzerland
August 08, 2007
Nokia (NYSE: NOK) and STMicroelectronics (NYSE:STM) today announced their intention to deepen their collaboration on the licensing and supply of integrated circuit designs and modem technologies for 3G and its evolution. The two companies also are negotiating a plan relating to transferring a part of Nokia's Integrated Circuit (IC) operations to STMicroelectronics.
The multifaceted agreement will enable STMicroelectronics to design and manufacture 3G chipsets based on Nokia's modem technologies, energy management and RF (radio frequency) technology and deliver complete solutions to Nokia and the open market.
At the same time, Nokia and STMicroelectronics are negotiating Nokia's IC operations transfer plan and accordingly, in order to reorganize and effect the planned competence transfer Nokia will start the personnel consultation process required by local regulations with its personnel representatives. The transfer is anticipated to concern approximately 200 Nokia employees in Finland and the UK, and it is estimated to take place during the fourth quarter 2007.
Nokia has also awarded ST a design win of an advanced 3G HSPA ((high-speed packet access) chipset supporting high data rates, which would be the first contribution of the acquired IC design operations. This design win represents ST's first win of a complete 3G chipset.
The collaboration between Nokia and STMicroelectronics is in line with the renewal of Nokia's chipset strategy. Nokia will continue to develop its leading-edge modem technology, which includes protocol software and related digital design for WCDMA/GSM and its evolution. This modem technology will then be licensed to chipset manufacturers who will develop and produce chipsets for Nokia. These manufacturers will also be able to produce and sell to the open market chipsets based on Nokia's modem technology.
"Nokia's strategy will be to collaborate with its semiconductor partners for full chipset solutions," said Niklas Savander, Executive Vice President, Technology Platforms, Nokia. "We have worked with STMicroelectronics for many years and the company is a perfect partner for this expanded collaboration."
"We are excited about the possibilities that the intended IC technology transfer will bring us," said Tommi Uhari, Executive Vice President and General Manager of ST's Mobile, Multimedia & Communications Group. "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 remains conditional on the completion of the contemplated transactions. ###
>> STMicroelectronics Selected by Top Tier Telecom Player to be Supplier of Digital Baseband ASICs for 3G Mobile Phones
W-CDMA mobile-phone platforms enabled by ST digital baseband ASICs now shipping
STMicroelectronics (NYSE: STM) today announced that it has signed an agreement with Ericsson Mobile Platforms to supply third-generation (3G) digital baseband processors to OEMs that are licensees of Ericsson Mobile Platforms’ leading-edge 3G mobile-phone technology. Because it handles the communication between the phone and the cell within the 3G mobile phone network, the digital baseband processor is a key component in a mobile phone. New 3G handsets operating on the W-CDMA (Wideband – Code Division Multiple Access) network, which contain these new digital baseband processor chips have already been delivered to selected customers.
In addition to manufacturing the processors in its leading-edge process technology, ST is also contributing to the development of these digital baseband ASICs by combining its expertise in System-on-Chip (SoC) design with the mobile platform knowledge of Ericsson Mobile Platforms.
“This agreement to produce the digital baseband is testament to ST’s world renowned ability to develop and produce cutting-edge semiconductor products for current and future generations of 3G mobile communications technology,” said Eric Aussedat, Group Vice-President and General Manager of ST’s Cellular Communication Division. “Ericsson Mobile Platforms’ is the leading independent platform supplier in the world, and this agreement further strengthens ST’s position as a leading chip supplier in the mobile handset market.”
ST is one of the world leaders in ICs for mobile communications ICs and offers an extensive portfolio of chips designed for use in mobile handsets and phones, including camera image sensors, Bluetooth and Wireless-LAN connectivity ICs, RF (radio-frequency) ICs, energy management chips, NOR and NAND Flash memories, discrete components, and also the award-winning Nomadik™ Multimedia Application Processor, which delivers world-beating video and audio performance to mid- to high-end multimedia phones and terminals. ###
>> STMicro Wins Contract to Supply Multimedia Chips to Nokia
February 20th, 2007
STMicroelectronics has won a contract to supply Nokia with processors capable of running multimedia functions for mobile handsets, according to a report on the website of financial daily La Tribune. STMicro is already a legacy supplier for other chips to Nokia, but this new order would allow STMicro to become a multimedia chip supplier as well, alongside Texas Instruments, the report said, citing sources who attended the 3GSM conference in Barcelona last week. Neither STMicro nor Nokia would confirm or deny the new agreement.
>> STMicroelectronics Joins the Series 60 Product Creation Community to Boost 3G Smartphone Market
Nokia and STMicro PR
Espoo, Finland, and Geneva, Switzerland
September 28, 2004
ST's Nomadik processors, coupled with Nokia Series 60 Platform, speed time-to-market
Nokia (NYSE:NOK) and STMicroelectronics (NYSE:STM) today announced that they have expanded their cooperation into the area of Series 60 product creation. ST's Nomadik family of multimedia application processors for 3G mobile devices have been adapted and optimized to support the Nokia Series 60 Platform, enabling faster handset development for Series 60 licensees.
ST will demonstrate the Series 60 Platform on the Nomadik processors at the CDMA Americas Congress at the Miami Beach Convention Center on September 28-30. The demonstration will showcase a Nomadik Development Kit built on the STn8800 (Nomadik) processor running on the Series 60 Platform. The solution will be available for Series 60 handset manufacturers before the end of 2004.
"We are very pleased to welcome STMicroelectronics to the Series 60 Product Creation Community. The commitment of silicon vendors will facilitate the acceptance of the Series 60 Platform across the industry," says Antti Vasara, Vice President, Nokia Technology Marketing and Sales. "Series 60 brings a feature rich software platform and multi-vendor economies of scale to the smartphone market, while ST's Nomadik platform family brings the essential requirements of low cost, low power, and high performance."
"The Series 60 Platform with ST's ultra-low-power Nomadik multimedia application processors will accelerate market acceptance of innovative third-generation (3G) handheld communication products and personal digital assistants (PDAs)," says Guy Lauvergeon, General Manager of STMicroelectronics' Multimedia Platform Unit. "It also represents a new level of cooperation between ST and Nokia."
The Nomadik open multimedia platform, winner of the Microprocessor Report's 2004 Best Application Processor of the Year Award, enables portable terminals, like mobile phones and PDAs, to play music, take pictures, record video and host two-way video communications in real time. Based on an innovative architecture built around smart accelerators, Nomadik chips deliver best-in-class, 30-frames-per-second video images while minimizing power consumption and cost.
The Nomadik's interface to leading open-market wireless modems, along with its capability to run the Symbian operating system (Symbian OS), make for fast and complete integration with the Series 60 Platform. For its part, the Series 60 Platform serves as a complete smartphone software package that is a reliable software base that designers can customize to their own hardware designs. The platform is designed with standardization in mind while maintaining a high degree of flexibility.
The Series 60 Platform, built on the Symbian OS, is the world's leading smartphone platform. It is licensed by some of the foremost mobile phone manufacturers including LG Electronics, Lenovo, Nokia, Panasonic, Samsung, Sendo, and Siemens. Support for the large color screen, easy-to-use interface, and extensive suite of applications make this software platform ideally suited to support new mobile services, such as rich content downloading and MMS. ###
>> ARM, Nokia Join STMicroelectronics, TI to Define Mobile Standards
The Mobile Industry Processor Interface (MIPI) Alliance, a new industry initiative that will define and promote open standards for interfaces to mobile application processors, was announced by founding members ARM, Nokia, STMicroelectronics and Texas Instruments . The MIPI Alliance is a response to the broad interest in the OMAPI tandard launched by ST and TI in December 2002.
OMAPI was formed by TI and ST to standardize interfaces for mobile application processors. The response to this initiative was very strong and indicated the need for a more representative formal industry organization. As a result, the new MIPI Alliance has been established as an incorporated not-for-profit entity that will include a wide range of member companies with the common goal of defining and promoting open, standard specifications for application processor interfaces. By establishing consistency in application processor interfaces, the alliance expects to ease implementation and design of hardware and software, promoting reuse and compatibility in mobile devices to accelerate time-to-market.
"Mobile device users and wireless carriers are demanding a rapidly changing set of features and functions," said Allen Leibovitch, IDC's Wireless Semiconductor Research Manager. "Standards like the MIPI Alliance can allow mobile device manufacturers and their semiconductor and software providers to more easily combine their best components and features and bring compelling products to market in a shorter time."
The MIPI Alliance is intended to complement existing standards bodies such as the Open Mobile Alliance (OMA) and 3GPP. While these organizations focus on services and air interfaces, respectively, the MIPI Alliance is focused on microprocessors, peripherals and software interfaces.
The MIPI Alliance is actively recruiting member companies such as handset manufacturers, semiconductor companies, hardware peripheral manufacturers, operating system (OS) vendors, middleware vendors and software application developers to help define and promote the adoption of the new standard.
As part of the MIPI Alliance, 10 working groups will be established to develop specifications in key areas such as camera and display interface, software abstraction, communications interface and system control.
The MIPI Alliance is structured to provide multiple levels of membership, in which benefits are proportional to contributions. Basic levels of membership enable use of specifications, while other levels of membership enable participation in working groups to define specifications. The MIPI Alliance expects to announce new members in the third quarter of 2003. More information including membership details on the MIPI Alliance is on www.mipi.org.
Quotes from Founding Members
"The MIPI Alliance goals of developing standards for application processor interfaces will allow the faster adoption of smart phones, reducing the barriers that exist today with propriety interfaces," said Mike Inglis, executive vice president of marketing at ARM. "ARM intends to upgrade its PrimeXsys platform to be compliant with the MIPI standards allowing semiconductor partners to quickly develop MIPI compliant application processors."
"We see the MIPI Alliance as an excellent forum to speed up development and time to market for mobile multimedia devices by defining open standards for application interfaces," said Jari Pasanen, Vice President, Nokia Mobile Phones. "This means that Nokia, and other hardware manufacturers, can deploy interoperable building blocks faster and at a lower cost."
"We believe that the MIPI Alliance will drive growth in mobile multimedia by creating an open standard for application processor interfaces," said Guy Lauvergeon, Group VP and General Manager of STMicroelectronics' Multimedia Platform Unit. "These open hardware and software interfaces will reduce the development time of end products based on future MIPI compliant application processors like ST's Nomadik family, enable widespread software reuse and foster proliferation of standard components."
"In order to facilitate the success of the mobile services market, industry leaders must work together to establish open standards and specifications," said Alain Mutricy, TI Vice President and WW OMAP General Manager. "TI will make its OMAP application processors compliant with the MIPI standard and work with the other members of the MIPI Alliance to bring mobile services to market more quickly while growing the market for the entire mobile industry value chain." ###
Today's MIPI Alliance members (over 100, with Qualcomm amongst the most notable missing wireless semi player) are listed here ...
- Eric -