Nokia to use new TI chip for low-cost mobile phones

In a move to offer low-cost, entry-level phones for fast-growing markets such as China and India, Nokia will begin using technology from Texas Instruments (TI) that integrates most handset electronics into a single chip.

The single chip, based on TI's DRP (Digital RF Processor) technology, incorporates the bulk of handset electronics, including memory, logic, power management and radio frequency processes, the companies said Monday in a statement.

The new wireless chip design uses digital technology to simplify radio frequency processing, which significantly reduces board space, extends battery life and make for a more cost-effective, versatile mobile phone, they said.

With the new chip, Nokia aims to offer less costly phones in high-volume markets.

Dallas-based TI agreed to build the chip in 2002 and delivered a sample version in December. The chip was developed with the company's 90 nanometer CMOS (complementary metal oxide semiconductor) manufacturing technology.

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