Supplier of advanced semiconductor solutions, Renesas Electronics, and mobile communications specialist, Nokia are to form a strategic business alliance to develop modem technologies, an alliance that will be further followed by long-term joint research cooperation on future radio technologies.

As part of this alliance, Renesas Electronics is to acquire Nokia's wireless modem business (for about $200m), a transfer that should strengthen Renesas Eletronics' position in the 3G and LTE market.

"This agreement will serve as an important step for us to become a leding mobile platform vendor in the global market," said Yasushi Akao, President of Renesas Electronics Corporation. "Our collaboration with Nokia will enable consumers to enjoy true mobile cloud computing experiences through our advanced high-speed mobile services."

The transfer includes certain of Nokia's patents related to the technology asset, as well as approximately 1,100 Nokia R&D professionals, most of them being located in Finland, India, the UK and Denmark.

"Wireless modems are an integral part of today's chipset solutions, and we believe that Renesas Electronics, as one of the key chipset vendors in the market, is an ideal position to further develop this offering," commented Executive Vice President at Nokia, Kai Ositamo. "This alliance enables us to continue to focus on our core businesses, connecting people to what matters to them with our mobile products and solutions."

Nokia will start the appropriate personnel consultation process with its personnel representatives according to each applicable jurisdiction's labour law requirements. The transfer is subject to regulatory approvals and other customary closing conditions, and is estimated to take place during the fourth quarter of 2010.

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