The acquisition of Icera in 2011 will go down as a bust for NVIDIA unless the company scores big with the possibility of a sale. On Tuesday, NVIDIA revealed that it would be halting operations of the Icera division that produces modems. The original acquisition of Icera was meant to integrate high-speed connectivity into Tegra processors. The Tegra 4i, launched in 2013, was the first processor from NVIDIA and Icera to have an integrated modem. Competition from Qualcomm and Intel has effectively pushed NVIDIA out of the business. Moving forward, the company will look to “parter with third-party modem suppliers” as it explores selling the entire division or its technology.
NVIDIA will report its first quarter earnings on Thursday.
Hit the break for the press release.
NVIDIA to Wind Down Icera Modem Operations
SANTA CLARA, CA–(May 5, 2015) – 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. Further details, including the financial impact, will be provided when NVIDIA’s first quarter financial results are announced on Thursday, May 7. To listen to the conference call with analysts and investors, which will be held that day at 2 p.m. PT (5 p.m. ET), dial (303) 223-2696; no password is required. A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, http://investor.nvidia.com, and at www.streetevents.com.
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