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Technology Stocks : 3G Wireless: Coming Soon or Here Now?

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From: Eric L12/14/2006 1:08:13 PM
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Ericsson EMP: STMicro Scores a Nice UMTS ASIC Win ...

>> STMicroelectronics Selected by Top Tier Telecom Player to be Supplier of Digital Baseband ASICs for 3G Mobile Phones

W-CDMA mobile-phone platforms enabled by ST digital baseband ASICs now shipping.

STMicroelectronics Press Release
Geneva
December 14,2006

st.com

STMicroelectronics (NYSE: STM) today announced that it has signed an agreement with Ericsson Mobile Platforms to supply third-generation (3G) digital baseband processors to OEMs that are licensees of Ericsson Mobile Platforms’ leading-edge 3G mobile-phone technology. Because it handles the communication between the phone and the cell within the 3G mobile phone network, the digital baseband processor is a key component in a mobile phone. New 3G handsets operating on the W-CDMA (Wideband – Code Division Multiple Access) network, which contain these new digital baseband processor chips have already been delivered to selected customers.

In addition to manufacturing the processors in its leading-edge process technology, ST is also contributing to the development of these digital baseband ASICs by combining its expertise in System-on-Chip (SoC) design with the mobile platform knowledge of Ericsson Mobile Platforms.

“This agreement to produce the digital baseband is testament to ST’s world renowned ability to develop and produce cutting-edge semiconductor products for current and future generations of 3G mobile communications technology,” said Eric Aussedat, Group Vice-President and General Manager of ST’s Cellular Communication Division. “Ericsson Mobile Platforms’ is the leading independent platform supplier in the world, and this agreement further strengthens ST’s position as a leading chip supplier in the mobile handset market.”

ST is one of the world leaders in ICs for mobile communications ICs and offers an extensive portfolio of chips designed for use in mobile handsets and phones, including camera image sensors, Bluetooth and Wireless-LAN connectivity ICs, RF (radio-frequency) ICs, energy management chips, NOR and NAND Flash memories, discrete components, and also the award-winning Nomadik™ Multimedia Application Processor, which delivers world-beating video and audio performance to mid- to high-end multimedia phones and terminals.

About Ericsson Mobile Platforms

Ericsson Mobile Platforms offers complete, end-to-end interoperability tested platforms for 2.5 and 3G. A common software platform for GPRS, EDGE and WCDMA/GPRS terminals enables application portability, stability and security, and ensures best-in-class outcomes regarding power consumption and size.

The technology is based on Ericsson’s global leadership of standardization work and the world’s strongest intellectual property rights for 2.5 and 3G systems.

Ericsson Mobile Platforms’ offering includes reference design, platform software, ASICs and development boards, development and test tools, industrialization software, support, training and documentation.

Ericsson Mobile Platforms is a business unit within the Ericsson Group.

About STMicroelectronics

STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2005, the Company's net revenues were $8.88 billion and net earnings were $266 million. Further information on ST can be found at st.com ###

>> Ericsson Mobile Platforms Implement Multiple Supplier Strategy for ASICs

Ericsson Press Release
December 14, 2006

With the growing volumes of WCDMA terminals, Ericsson Mobile Platforms has implemented a multiple supplier strategy for digital baseband ASICs. This will enable Ericsson Mobile Platforms to continue leveraging the latest technology, manufacturing capabilities, and supply capacity in the market.

Since the start of its operations, Ericsson Mobile Platform has had Texas Instruments (TI) as a strategic partner, and this relationship will continue. In addition, Ericsson Mobile Platforms have, in accordance with the new multiple supplier strategy, signed an agreement with a second strategic hardware manufacturing partner for digital baseband ASICs, STMicroelectronics (ST). Deliveries of new commercial platforms consisting of digital baseband ASICs manufactured by ST has already started.

Ericsson Mobile Platforms design digital baseband ASICs together with hardware manufacturing partners. With the multiple supplier strategy, Ericsson Mobile Platforms will continue to leverage its competence within cellular modem design and mobile terminal architecture across a broad supplier base. The hardware manufacturing partners bring competence in designing digital ASICs together with word class manufacturing capability in advanced technology nodes.

Robert Puskaric, head of Ericsson Mobile Platforms, says: "By using multiple hardware manufacturing partners, and their respective foundry partners, Ericsson Mobile Platforms is well prepared for the demands of increased volumes and complexity of the mobile terminal. This will allow us to bring an even more competitive offer to our customers and we are confident that this will help to further strengthen our leading position in WCDMA."

Ericsson Mobile Platforms is the leading platform suppliers in the world. To date, more than 58 WCDMA products have been launched based on technology from Ericsson Mobile Platforms.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Read more at ericsson.com

Note To The Editor:

Ericsson Mobile Platforms offers complete, end-to-end interoperability tested platforms for 2.5 and 3G. A common software platform for GPRS, EDGE and WCDMA/GPRS terminals enables application portability, stability and security, and ensures best-in-class outcomes regarding power consumption and size.

The technology is based on Ericsson's global leadership of standardization work and the world's strongest intellectual property rights for 2.5 and 3G systems.

Ericsson Mobile Platforms' offering includes reference design, platform software, ASICs and development boards, development and test tools, industrialization software, support, training and documentation. ###

>> ST Steals 3G Digital Baseband Processor Thunder from TI

Electronic News
Suzanne Deffree
12/14/2006

edn.com

STMicroelectronics has inked a partnership agreement with Ericsson Mobile Platforms (EMP) that may take some of the wind out of Texas Instruments’ sails.

The company today announced deal with EMP to supply OEMs that are licensees of EMP’s 3G mobile-phone technology with 3G digital baseband processors.

“EMP has traditionally had a partnership with TI, but will now be adding another partner – STMicroelectronics,” Tim Luke, a managing director at Lehman Brothers, said in a research note this morning. “While we expect limited impact to revenues, we expect the announcement may impact sentiment towards TI. We believe the announcement may be contributing to 3G weakness discussed by TI on their mid-quarter update on Monday.”

At that time, TI downgraded its Q4 revenue forecast to down 9 percent sequentially from previous estimates of flat to down 8 percent. TI could not be reached for comment regarding today’s news.

New 3G handsets operating on the W-CDMA network, which contain these ST digital baseband processor chips, have already been delivered to selected, undisclosed customers, the European semiconductor giant said.

In addition to manufacturing the processors, ST is also contributing to the development of these digital baseband ASICs by combining its knowledge of SoC design with the mobile platform knowledge of EMP.

“Ericsson Mobile Platforms is the leading independent platform supplier in the world, and this agreement further strengthens ST’s position as a leading chip supplier in the mobile handset market,” said Eric Aussedat, group VP and general manager of ST’s cellular communication division, in a statement.

ST did not announce the financial details of its agreement with EMP. ###

- Eric -
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