Having cemented Tegra 2 as one of the key chip technologies for Android tablets, Nvidia is set to expand its approach with the purchase of wireless data chip firm Icera.

The Bristol-based business, which has been acquired for $367 million in cash, specialises in processors for 3G and 4G handsets.

Nvidia claims it intends to combine both firm's respective technologies to further its position in the mobile market.

Two for one

The idea is, by covering both areas – app processors and baseband processors – Nvidia will be able to secure deals with manufacturers to take both chips, or chips that integrate both technologies, potentially doubling its revenue opportunity with each device sold.

The baseband processor market is highly lucrative, worth $15 billion a year based on Nvidia's estimates.

"This is a key step in Nvidia's plans to be a major player in the mobile computing revolution," said company president and CEO Jen-Hsun Huang.

"Adding Icera's technology to Tegra gives us an outstanding platform to support the industry’s best phones and tablets. Our businesses are complementary. Icera has the right team, with a strong, proven track record. And their nimble, entrepreneurial, engineering-focused culture mirrors our own."

Nvidia claims the deal will most likely be completed within the next 30 days.

[source: Icera]