NVIDIA has recently made a major decision to close down Icera modem operations in the 2nd quarter of fiscal 2016. It’s not just closing but the operations or technology is up for sale after more than four years since its 2011 acquisition.
Icera is NVIDIA’s solution to having a modem platform and an integrated application processor. This winding down operations is not really surprising since we already knew that NVIDIA would be abandoning smartphones to just focus on cars and gaming. It seems the plan is shaping up to change its strategy and simply focus on what is more profitable for the company particularly automotive, gaming, and cloud computing. NVIDIA has joined the tablet game recently and it’s now concentrated on gaming.
NVIDIA’s Icera 4G LTE modem currently meets the needs of the company maybe until next year but moving forward, it hopes to work with other 3rd-party modem suppliers instead. Developing a modem for its own use will no longer be part of the agenda.
At present, Icera has about 500 employees based in the US, Asia, United Kingdom, and France. To know more how this news will impact NVIDIA, wait for the first quarter financial results to be announced later today in a conference call with investors and analysts. Feel free to listen to the live webcast at NVIDIA’s website.
SOURCE: NVIDIA
