Nokia has just signed a contract with Broadcom that will bring custom 5G chipsets for the smartphone brand. It is the third major company to sign such an agreement after Intel and Marvell in March. Through this contract, the Finnish company will be able to expand its market presence and increase shipments. The brand expects that 35% of all 5G products will be equipped with this specially designed 5G chip by the end of 2020. Broadcom will be busy in the coming months to meet Nokia demand.
Industry confidential says Broadcom, along with two other chip makers, will help Nokia expand its ReefShark platform. Used in AirScale radio products while reducing size and power consumption. In addition, these companies want to offer improvements while providing capacity and a major performance review.
Given the challenges in the cost and supply chain, Nokia had to reconsider its decision to use Field Programmable Gate Arrays for 5G equipment, which is more flexible but also more expensive. Sandro Tavares, Nokia’s head of mobile network marketing, told Reuters that the company still supported the decision to use FPGA. According to him, the market is evolving rapidly and Nokia needs to accelerate the process of developing new suppliers.
Broadcom ASIC Capabilities Will Increase Nokia Performance and Reduce Time and Resources
According to Tommi Uitto, president of mobile networks at Nokia, Broadcom’s ASIC capabilities will allow the Finnish company to deliver high performance.
The Finnish company provides 5G services in various markets around the world, including 5G network operators for the United States. Therefore, the company must continue to reduce the cost of its chips. In the first quarter of 2020, the company stated that 17% of 5G equipment had custom brands. This increases from about 10% at the end of 2019 and by the end of this year, it intends to have custom brands in more than 35% of 5G equipment. The ultimate goal of the company is to achieve 100% by the end of 2022.
Nokia has a great opportunity to become one of the largest suppliers of 5G solutions in the world. With the US government’s ongoing campaign against Huawei, the Finnish company is a good choice in the 5G category. There are many countries that do not want to oppose the US, but desperately need a strong 5G infrastructure.
We will probably see the first fruits of the new partnership with Broadcom in the coming months.