NVIDIA announces it will be phasing out its Icera modem operations in Q3 2015 (fiscal Q2 2016). The firm bought Icera in 2011 for $367 million in a failed attempt to break through in the smartphone chip market with an integrated application processor and modem platform.
Since then, NVIDIA has reshaped its Tegra efforts and the company no longer sees the need to develop its own modem solutions. NVIDIA mentions it is open to a sale of the technology or operations.
Future mobile chips from NVIDIA will continue to use the Icera 4G LTE model for the next year or more, after that NVIDIA will use third-party modem suppliers.
NVIDIA (NASDAQ: NVDA) today announced that it will wind down its Icera modem operations in the second quarter of fiscal 2016. The company is open to a sale of the technology or operations.
The company purchased Icera in 2011 to engage the smartphone revolution with a leading integrated application processor and modem platform. Since then, the company has reshaped its strategy to focus on high-growth opportunities in gaming, automotive and cloud computing applications like deep learning, where its visual computing expertise is greatly valued.
The Icera 4G LTE modem meets the company's needs for the next year or more. Going forward, the company expects to partner with third-party modem suppliers and will no longer develop its own.
The Icera modem operation has approximately 500 employees, based primarily in the U.K. and France, with smaller operations in Asia and the United States.