The European chip maker has a strong presence in cellular phone handsets. In wireless infrastructure systems, STMicroelectronics currently sells standard products into the segment, including flash memories, analog-to-digital converters, and power transistors, but the new division will develop dedicated ASICs, mixed-signal ICs, and apply the company's ST100 digital signal processor (DSP) core to new digital baseband chips for infrastructure equipment, said the semiconductor maker.

The move is aimed at expanding STMicroelectronics' reach into a wireless infrastructure chip market that is expected to grow from $2.9 billion in 2002 to $7.1 billion in 2006, according to a recent forecast by Dataquest Inc.

STMicroelectronics aims to leverage its experience and existing radio-frequency technologies serving handsets to increase its offering for network equipment, said Daniel Abecassis, group vice president and general manager of the new Wireless Communications Infrastructures Division in Sophia Antipolis, France.

The new division will develop dedicated infrastructure ICs for GSM/GPRS, CDMA and new third-generation telecom standards, said STMicroelectronics.