u-blox pulls out of cellular IoT

u-blox in Switzerland is pulling out of the cellular IoT business after failing to find a buyer.

The company has lost CHF15m ($16.5m) in the first half of the year on revenue of CHF27m ($29.5m) on the business and will instead focus on its GNSS satellite location business and Bluetooth and WiFi modules.

The cellular business has 200 staff and makes the SARA and LEXI modules for NB-IoT, LTE-M, LTE Cat 1, LTE Cat 1bis, LTE Cat 4, 3G, and 2G cellular services.

The LTE Cat 1, LTE Cat 1bis, LTE-M, NB-IoT, and satellite IoT modules cater to IoT applications with varying data rate requirements, from high data rates for voice and video streaming to ultra-low power consumption. The high-speed LTE Cat 4 modules supported HD video transmission and infotainment applications.

• First satellite IoT NTN cellular module
• LTE Cat 1bis module with eSIM

“Our efforts to find a viable path forward for the Cellular business did not pan out, including exploring a potential sale, leading us to the decision to phase out this business. We will do our utmost to support our employees, customers and partners impacted by this decision,” said Stephan Zizala, CEO of u-blox, who took over in 2022.

“This change positions u-blox as a leading and dedicated provider of GNSS semiconductor solutions in a dynamic and growing market, while retaining its value creative Short-Range business,” says the company. “[This will] address expanding opportunities within the global positioning market, including autonomous vehicles, industrial IoT, and tracking applications.”

“This strategic shift will enable us to unlock even greater potential within the positioning technology market and accelerate the development of cutting-edge solutions for our customers,”

The company says will work with customers and suppliers to minimize disruptions and to ensure a smooth and responsible phase out process that starts immediately. This will result in costs of around CHF 65 million in Q1 2025 from restructuring.

The move preserves the existing guidance of revenue of CHF 60m to 70m for Q4 2024. The company had revenue of CHF577m in 2023 with profits of CHF112m.