Report: Broadcom buys Wi-Fi IP from Indian firm

|About: Broadcom Limited (AVGO)|By:, SA News Editor

Broadcom (BRCM +0.6%) has bought a unit of India's Ittiam Systems that specialized in improving Wi-Fi transfer speeds, the Economic Times reports.

The purchase comes as Broadcom faces tougher competition in its Wi-Fi/Bluetooth/GPS combo chip business from Qualcomm and others, particularly in the low-end/mid-range smartphone market.

The company still dominates the less cost-sensitive high-end segment, thanks in large part to major design wins with Apple and Samsung. Broadcom had an estimated 39% of the 2013 mobile connectivity market.

Shares +19% on the week due to enthusiasm about Broadcom's planned baseband exit.