Sept 4 Mobile chipmaker Broadcom said
it is buying Japanese chipmaker Renesas Electronics'
LTE-related assets for $164 million to speed up its launch of
next-generation communications technology.
Broadcom's chips integrating Wi-Fi and Bluetooth technology
are used in Apple's iPhone and other top-tier smartphones and
The company makes 3G baseband chips used in less expensive
smartphones sold in Asia and other emerging markets, and, like
Intel, Nvidia and other chipmakers, Broadcom has been rushing to
develop and launch high-speed 4G baseband chips compatible with
more advanced networks.
Broadcom said it expects the deal to speed up the launch of
its first multimode, carrier-validated LTE, or Long Term
Evolution, chip platform into early 2014.
"Broadcom is gaining a dual-core LTE (chip) that is ready
for volume production and is carrier-validated by leading global
operators in North America, Japan and Europe," the company said
of the acquisition in a press release on Wednesday.
Qualcomm is currently the only chipmaker selling LTE chips
for top-tier smartphones used on LTE networks in the United
Broadcom said it expects the cash transaction to be roughly
neutral to non-GAAP earnings per share by the second half of
Separately, Broadcom tightened its revenue forecast for the
September quarter, saying it now expects revenue between $2.075
billion and $2.175 billion, compared to a prior forecast of
$2.05 billion and $2.20 billion.