January 22, 2025 /SemiMedia/ — u-blox, a leading global provider of positioning and wireless communication technologies, has made a strategic decision to concentrate more on its Locate business and gradually phase out its Cellular operations. This move strengthens u-blox's role as a key provider of GNSS semiconductor solutions, emphasizing its expertise in the growing positioning market, while continuing to develop its Short-Range business.

The company believes that by prioritizing the Locate business, it will enhance its innovation capacity, capitalize on its unique technological strengths, and seize new growth opportunities in areas such as autonomous vehicles, industrial IoT, and tracking applications. This refocused strategy is expected to further solidify u-blox’s position as a leader in location-based solutions.

Following a thorough review, u-blox determined that phasing out the Cellular business aligns with its long-term strategic goals and will improve operational efficiency. The Cellular segment, employing over 200 staff, generated CHF 27 million in revenue but posted an adjusted EBIT loss exceeding CHF 15 million during the first half of 2024.

As part of the review, u-blox also plans to continue enhancing its Short-Range business, which includes Wi-Fi and Bluetooth modules.

“This shift in focus will unlock significant opportunities within the positioning technology space, enabling us to accelerate the development of innovative solutions for our customers,” said Stephan Zizala, CEO of u-blox. “Despite exploring several options, including a potential sale of the Cellular business, we ultimately decided that phasing it out was the best course of action. We are committed to supporting our employees, customers, and partners through this transition.”

The company will engage closely with all affected stakeholders to minimize disruptions during the phase-out process, which will begin immediately, with most cost-saving measures expected to take effect in 2025.