Seeking Alpha

Broadcom reportedly scores LTE baseband wins in challenge to Qualcomm

  • JPMorgan reports Broadcom (BRCM +1.6%) will ramp shipments of 4G baseband chips to Samsung in Q1 for use in mass-market phones, and has also scored 4G baseband wins with another top smartphone vendor.
  • The report comes as Broadcom gets ready to begin selling its BCM21892 4G baseband (first announced in February), and works to integrate Renesas' 4G baseband ops (acquired for $164M).
  • Any 4G share gains by Broadcom would likely come at Qualcomm's (QCOM +0.1%) expense. Qualcomm had a 97% 4G baseband share earlier this year (per Strategy Analytics), and just announced a new baseband modem that leverages TSMC's next-gen 20nm manufacturing process.
  • Investors have already expected Qualcomm's 4G baseband share to fall some in 2014, thanks to fresh competition from Broadcom, Intel, and Nvidia.
  • The JPMorgan report is a breath of fresh air for Broadcom investors, given the company's disappointing Q4 guidance was partly due to baseband weakness.
Comments (1)
  • Cool...... i am pleased to see more companies coming into LTE. I think Apple should just buy Broadcom and start its own LTE solution
    5 Dec 2013, 08:18 PM Reply Like
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