Lowdown on the ST-NXP-EMP merger

8/29/2008 12:00 PM EDT

• EMP is strong in UMTS baseband, trailing only Qualcomm among third-party 3G designers.
• The merger plugs two gaps: connectivity chips and application processors (ST brings Nomadik to the table).
• EMP has an unusual licensing model, with chips manufactured by TI and ST. EMP will likely stop licensing its designs, costing TI as much as $500 million a year in lost business.
• The new company will have strong positions with Sony-Ericsson, Nokia, and Samsung.