German-based, Infineon announced that it has been chosen by Finnish handset major, Nokia for supplying EDGE chipsets. The current suppliers include Texas Instruments and Broadcom.

Presently Infineon supplies chipsets for entry level models of Nokia. The new deal is viewed as the company scaling its position as a supplier to Nokia and in fact will now cater to high-end models as well.

The development is also seen as the firm consolidating its position as one of the top three suppliers to Nokia.  

The development resulted in shares of Infineon rise 8 percent in the opening trade to settle down at 3.4 percent high.