Santa Clara, Calif.-based MediaQ, based in the same city, makes processors to improve the display and battery life of handheld devices based on advanced wireless operating systems from Microsoft, PalmSource and Symbian (a partnership of major cell phone makers).sells chips to produce graphics on computer screens.
MediaQ's customers include major handheld makers Mitsubishi, Siemens,, Sharp, Philips, Dell and Sony.
The purchase "supports Nvidia's strategy of extending our platform reach and accelerates our entry into the wireless mobile markets," said Nvidia CEO Jen-Hsun Huang.
Nvidia will pay $70 million for MediaQ--mostly in cash--and the deal will close by the third quarter of the graphics chipmaker's 2004 fiscal year, Nvidia said. The company promised to provide additional details about the deal after it announces quarterly earnings on Aug. 7.
The chipmaker has been distracted lately, however, by persistent manufacturing problems that resulted inin introducing its high-end GeForce FX graphics chip for PCs.