Nokia Qualcomm licensing agreement to benefit Taiwan mobile manufacturers (Taiwan)
Taiwan ODM/OEM handset makers seem positive about the new Nokia and Qualcomm licensing agreement , stating that the new deal may result in more handset orders from Nokia, according to sources from the Taiwan handset industry.
Since Nokia has been granted a license for all of Qualcomm’s patents to use in mobile phones, including CDMA and WCDMA, Nokia is expected to adopt a more aggressive approach to push sales of its CDMA phones in the North American market, which will inturn lead to more orders for Nokia’s production partners in Taiwan, including Foxconn Electronics/ Foxconn International Holdings (FIH) and Compal Communications, the sources noted.
The new agreement could also lead to cooperation between the two companies in the development of WCDMA phones, the sources indicated, noting that Nokia is currently buying 3G/3.5G handset chips from Texas Instruments (TI) and STMicroelectronics.
Taiwan handset makers could also land orders for WCDMA handsets from Nokia should the vendor decide to switch to Qualcomm’s 3G/3.5G platforms, which Taiwan makers have been using to a great extent in handset production, the sources stated.
Taiwan Semiconductor Manufacturing Company (TSMC), which offers foundry services to Qualcomm, could also benefit from the Nokia-Qualcomm deal since Qualcomm may place more wafer orders due to increasing demand for handset chips from Nokia, as reported by a Chinese daily.
