Nokia unloads wireless modem biz to Renesas for $200M

Nokia (NYSE:NOK), better known for handsets and software, is selling its wireless modem business to Renesas Electronics for $200 million. As part of the deal the two companies are establishing a research joint venture to collaborate on future wireless radio technologies.

The deal, which is expected to close in the fourth quarter, is for Nokia's wireless modem technologies for LTE, HSPA+ and GSM standards. The wireless modem market has come under increased pressure recently from Chinese competitors like Huawei and ZTE, and Nokia said the move will allow it to focus on its core handset business. As part of the deal, Nokia will transfer around 1,100 R&D employees to Renesas.  

Renesas, a chip maker best known for its microcontroller work, stands to gain in the wireless chip market.

Nokia has come under financial pressure of late. The company issued a warning last month about its upcoming second-quarter financial performance, and said sales and margins in its key devices and services unit will be weaker than expected.

For more:
- see this release
- see this NYT article
- see this Reuters article

Related Articles:
Nokia to co-op on LTE-Advanced chipset
Nokia cuts Q2 forecast on smartphone, margin concerns
Analysts: Nokia may issue Q2 profit warning

Suggested Articles

The U.S. Department of Justice is charging Huawei with racketeering and conspiracy to steal trade secrets.

Verizon said the State of New York OGS has authorized Verizon as one of multiple contractors to offer services to state agencies and public safety.

P.I. Works announced that its field proven 5G Centralized SON and 5G Performance Management solutions have been successfully deployed into Telefónica