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NEWS UPDATES 25 June 2009

Intel, Nokia form alliance for mobile business

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The Philippine operation of Texas Instruments (TI) hangs in the balance after rival Intel forged a strategic partnership with Nokia to develop futuristic mobile computing devices, local daily the Manila Times reported.

One of the Philippines’ electronics industry pioneers, the local unit of TI has been operating in the country for nearly three decades, and manufactures the digital signal processors (DSPs) used in the Finnish company’s mobile phones.

Intel and Nokia announced Tuesday that they had entered into a “strategic relationship” to develop futuristic mobile computing devices.

Intel, the world’s biggest computer-chip maker, and Nokia, the largest mobile phone manufacturer, said their partnership would seek to “define a new mobile platform beyond today’s smart phones, notebooks and netbooks.”

The alliance between the leaders in their respective fields would enable “the development of a variety of innovative hardware, software and mobile Internet services,” they said in a statement.

Intel dominates the chip market for computers but has had little success in its attempts to break into the mobile phone arena.

The Santa Clara, California-based Intel and Helsinki-based Nokia did not unveil plans for any specific products but said they would collaborate in developing operating systems for the future mobile computing devices using open-source Linux software.

“With the convergence of the Internet and mobility as the team’s only barrier, I can only imagine the innovation that will come out of our unique relationship with Nokia,” said Anand Chandrasekher, a senior vice president at Intel. “The possibilities are endless.”

“Today’s announcement represents a significant commitment to work together on the future of mobile computing, and we plan to turn our joint research into action,” said Kai Oistamo, an executive vice president at Nokia.

“We will explore new ideas in designs, materials and displays that will go far beyond devices and services on the market today,” Oistamo said.

Intel’s tie-up with Nokia comes slightly more than two weeks after the semiconductor maker announced that it has agreed to buy software company Wind River Systems for $884 million in a bid get its chips into more devices.

Intel said that its takeover of Wind River is part of its strategy to grow beyond its traditional personal computer and server markets and into mobile handheld devices and other systems.


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