Graphics chipmaker Nvidia Corp. is ending its Icera modem operations, beginning in the second quarter of this year, and offering up the technology or operations for sale.
In 2011, Nvidia acquired Icera in order to push the company further into the smartphone market using Icera’s integrated applications processor and modem business to gain ground in that market. However, since that time, the company has refocused its efforts in gaming, automotive and cloud computing, Nvidia says.
Nvidia says the 4G Long Term Evolution (LTE) modem products will meet the company’s needs for the next year or more. But after that, Nvidia says it will use third party modem suppliers and will no longer develop its own.
If the Icera business cannot be sold, Nvidia will take a $100 million to $125 million restructuring charge for severance and other employee benefits, tax expense items and other costs associated with the wind down, according to Colette Kress, executive vice president and chief financial officer at Nvidia.
Icera, based in the U.K., has about 500 employees.
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