Chipmaker Broadcom has decided to acquire the developed of LTE 4G chips Beceem Communications for $316 million in cash.
The acquisition marks Broadcom’s rapid expansion into the emerging 4G-enabled business line. The company currently supplies chips for Apple’s iPhone and iPad devices and is normally into developing 2G and 3G chips.
Based in Santa-Clara, Beecem has a chip manufacturing plant in Bangalore, India, which produces chips that work with new and emerging wireless technologies like 4G, which will double or triple the speeds at which the web is accessed from mobile devices.
However, the main reason that Broadcom went for Beecem is for its presence in the 4G chip market which support WiMax and LTE technologies, which companies like Verizon Wireless plan to deploy next year.
Scott Bibaud, general manager of Broadcom's mobile platforms group, said in an interview with the Wall Street Journal: “We had a small amount of development going on inside the company, but we decided to acquire to speed up our development.”