Following on from the original announcement that was made on 8 August 2007, Nokia and STMicroelectronics have closed the deal 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 operations to STMicroelectronics and positions ST to design and manufacture 3G chipsets based on Nokia's modem technologies, energy management and RF technology, and to deliver complete solutions both to Nokia and to the open market.

The agreement includes the transfer of approximately 185 highly skilled engineers and other Nokia personnel in Finland and the UK to STMicroelectronics. This transfer has been subject to personnel consultation in accordance with the due process required by local regulations. Also, as part of the arrangement, Nokia has awarded ST a design win of an advanced 3G High Speed Packet Access (HSPA) chipset supporting high data rates, which represents ST's first complete 3G chipset.