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STMicroelectronics has announced a strategic license agreement with Advanced Micro Devices to deliver next-generation graphics technology for mobile multimedia devices. Under the terms of the agreement ST will use technologies developed by ATI, now AMD’s graphics product group and handheld division, in its Nomadik platform for handhelds.

ST has licensed AMD’s OpenGL ES 2.0 compliant 3D and OpenVG 1.0 vector graphics core engine and related software. Research and development teams from AMD and ST will work closely together to integrate AMD’s unified shader-based technology into Nomadik devices for the next generation of high-end feature phones, smartphones and other portable multimedia devices. The combination of Nomadik and AMD graphic technology is expected to considerably improve image quality while delivering leading battery life, the companies indicated.

STMicroelectronis’ Nomadik platform is used by companies like LG Electronics and Samsung in cell phones as well as by several manufacturers of Windows Mobile-based handsets.

This is not the first time when ATI/AMD licenses intellectual property to makers of cell phones and handheld devices. Back in May, 2006, ATI Technologies Inc. has signed an agreement with Nokia, the world’s largest producer of cell phones who controls about one third of the market.

“A thorough benchmarking study by ST confirmed that AMD has best-in-class hardware-accelerated technology, with game console quality and high-performance vector graphics capabilities for the user interface and other applications such as GPS,” said Jyrki Hannikainen, general manager of ST’s Application Processor Division. “Combining this with the proven strengths of our Nomadik platform results in an exciting synergy that will bring tremendous benefits to the mobile-phone industry, which is demanding increasingly sophisticated graphics capabilities.”

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