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NVIDIA abandons the development of modems for mobile devices
NVIDIA Announces Plans to End Smartphone and Tablet Modem Development to Focus Fully on Gaming, Automotive and Cloud Technologies.
NVIDIA entered the mobile chips market for connecting devices to cellular networks in 2021 when it acquired Icera for $ 367 million. It employs about 500 people – mainly in the UK and France.
NVIDIA’s modem business did not work out: the company could not compete with the leader Qualcomm, and the demand for several Android tablets based on NVIDIA chipsets was low, The Wall Street Journal notes.
NVIDIA is now ready to sell all Icera or its technology. It is planned to close this business by the end of the second quarter of the fiscal year 2021, which will be closed at the end of July 2021. The company will provide financial implications associated with the abandonment of the modem route and other information about the planned transaction in the framework of the quarterly report, which will be published on Thursday, May 7.
NVIDIA adds that the Icera 4G LTE modem will be able to meet the company’s needs for at least one year, but NVIDIA has finally decided to stop developing such chips and use solutions from other manufacturers. NVIDIA does not specify the names of partners yet.