Behind the smartphone boom is the “tattered fight†of mobile phone chip makers. In the face of the fierce attack by Chinese manufacturer MediaTek, Broadcom announced that it will withdraw from the mobile communication chip market (baseband processor chip). Some analysts said that Intel may acquire Broadcom's mobile phone chip business and enhance its ATOM mobile chip strength.
The mobile communication chip market has gradually turned to "cost intensive", and Broadcom has been losing market share, and the business has also affected the company's performance. Some analysts said that Broadcom's mobile phone chip business is not profitable. Broadcom’s decision was welcomed by investors, and its share price soared 13% on Monday. The company said it will transfer or reduce its mobile communications chip business in the future, a move that could reduce its spending by $700 million a year.
In Broadcom's mobile chips, some of the chips that integrate Wi-Fi and Bluetooth technology are used in Apple's iPhone and other mobile devices of first-tier manufacturers. However, in the low-end smartphone chip market, MediaTek has seized the market of Broadcom. In the 4G chip market, Broadcom also needs to compete with the industry giant Qualcomm. Some analysts said that Broadcom has to find a buyer for its communication chip business, it is not difficult, Ascendiant Capital analyst CodyAcree said that Intel may acquire Broadcom's baseband mobile phone chip business, but Intel has already obtained some similar Technology patent authorization.
According to the data, Intel has previously acquired Infineon's wireless communication chip business. Currently, Intel Mobile Communications is also developing and manufacturing baseband processors. Intel has launched the Atom series of integrated baseband processors. Can be used on smartphones and tablets. However, due to the late start, in the mobile chip market, Intel lost to other ARM architecture vendors, Intel Atom chip, has already regarded the tablet as the first step to compete for share, this year plans to let 40 million tablets with Atom chips .
Industry analysts said that Broadcom's mobile phone chip roadmap has fallen behind Qualcomm, MediaTek, Marvell and other rivals. In fact, the fierce competition in the mobile phone chip market has already caused some large manufacturers to withdraw. Companies such as Texas Instruments, STMicroelectronics, and Ericsson have already given up their baseband processor business. It is reported that the chips of smart phones are generally divided into two categories: baseband processor and application processor. The former implements mobile call function, while the latter is mainly responsible for application software operation and multimedia, data and file processing.
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