MUNICH, Germany — Handset manufacturer Nokia has selected Infineon's E-Goldvoice chip for some of its entry-level GSM phones. The message puts an end to speculation who is the customer behind a "major design win" Infineon had announced in the past weeks.

With its E-Goldvoice single chip solution for GSM handsets, Infineon is addressing the fast-growing market for Ultra Low Cost (ULC) handsets. According to earlier Infineon statements, the material costs for such a handset should be in the range of $16 in 2007 for platforms based on this chip. In the case of Nokia, however, Infineon declined to comment since "we do not know which additional components Nokia will use in its products", as a spokesperson said.

The E-Goldvoice includes baseband processor, RF transceiver, power management unit and RAM on a single chip measuring 8 by 8 millimeters. According to Infineon, the device is designed for voice-centric phones with several added features targeting at entry-level handsets.

ULCs are the fastest growing segment of the mobile handset market. According to Strategy Analytics, the number of units will grow from 19 millions in 2006 to 48 millions in 2007. Strategy Analytics also says that handset manufacturer Motorola dominates this market segment with a share of 80 percent.

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