Nokia begins outsourcing strategy

9 August 2007
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10 August 2007 | Paul Snell

Nokia is to outsource the development of its chip technology to broaden its supplier base.

The Finnish phone manufacturer said it would combine licensing and multisourcing, where work is outsourced to a number of providers for chips used in its mobile phones. This strategy, it said, would create more external innovation and greater competition in the market.

The work will be given to four suppliers: Texas Instruments, Broadcom, Infineon Technologies and STMicroelectronics. Nokia will also license its own modem technology to these suppliers to drive innovation.

Niklas Savander, executive vice-president for Nokia technology platforms, said in a statement: "This is a pragmatic move in the face of an increasingly complex technology environment. Companies need to focus on areas where they can partner with others."

In June AMR Research rated Nokia's supply chain the best in the world, and praised its supplier development and collaboration (News, 21 June).

SMaug2007

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