Nokia welcomes STM-Ericsson chip venture
HELSINKI (Reuters) - The world's largest cellphone maker Nokia (NOK1V.HE) welcomed on Wednesday the merger of wireless chip and software businesses of Ericsson (ERICb.ST) and STMicroelectronics (STM.PA).
"Nokia supports such consolidation moves fostering beneficial developments in the industry and sees the STMicro/Ericsson joint venture as a positive move," Nokia spokeswoman Arja Suominen said.
"It is important that our suppliers are strong industry players with offerings that allow Nokia to leverage external innovation," she said.
The new company, announced on Wednesday, will bring together the Mobile Platforms unit of Ericsson, the world's biggest mobile telecoms equipment maker, and ST-NXP wireless, supplier to Nokia, and the third-largest maker of mobile chips globally.
With pro-forma 2007 revenues or $3.6 billion, the venture will present a tougher challenge to wireless chip market leader Qualcomm (QCOM.O) and number two Texas Instruments (TXN.N).
(Reporting by Tarmo Virki)
