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Nokia To Sell Wireless Modem Business For $200 million

Nokia has announced that it is selling its wireless modem division to Renesas Electronics, the Wall Street Journal reports.

The Finland-based company has agreed to sell its wireless modem business division to the world’s third largest manufacturer of semiconductors, Renesas Electronics for $200 million.

Tokyo-based Renesas Electronics is jointly owned by Mitsibushi, Hitachi, and NEC.

According to the agreement, announced on Tuesday, Nokia will hand over technology patents, including LTE, HSPA and GSM to the Tokyo-based company.

"Together with Renesas Electronics' robust line-up of application processors, RF transceiver [integrated circuits], high power amplifiers and power management devices, the wireless modem technologies enable Renesas Electronics to deliver a complete mobile platform solution to the market," said both companies in a joint statement.

According to the agreement, about 1,100 employees working in R&D department at Nokia in Finland, Britain, India, and Denmark will now join Renesas.

The sale will help company give complete attention to its core business and products, said Kai Oistama, executive vice president at Nokia.