Nokia to change 5G chips to compete with Huawei and Ericsson

Although the 5G market is booming , Nokia has recognized that the new technology is costing much more than anticipated. At an investor conference, CEO Rajeev Suri admitted that chip production for 5G antennas is undermining the company's cash.

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That's because Nokia didn't make a good choice when using the field programmable gate array (FPGA) chipset in its 5G devices. As a result, while representing a competitive advantage, producing this component is becoming very expensive and this reduces the company's profit.

So, in an effort to resolve the issue, Nokia has suspended dividend payments and hired an additional 350 employees to work on a chip that should replace FPGAs. However, the deadline for a new product to hit the market is two years.

Commenting on the issue, Nokia Global Head of Mobile Network Marketing, Sandro Tavares, said the choice of the FPGA chipset gave the company a competitive advantage, but the scenario is now different:

This chip is programmable and customizable. It brings together the features and efficiency of a powerful SoC, but with the flexibility of programming via firmware. But it has the opposite side of production cost and energy consumption. FPGAs cost much more in the unit price and use much more energy.

Nokia executives also revealed that the company is working even with the help of Intel. However, the problems of Finnish may end up accumulating as competition for the 5G market has been intensifying. For now, Nokia's earnings are forecast to remain low.

Anyway, the company already has a contract with the four major carriers in the United States, and it is also being responsible for the delay in the release of 5G in some cities . Remember that a rumor recently indicated that the Trump government is studying ways to help the company financially , but this information has not yet been confirmed.


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