Silex Unwired

Broadcom Exits Wireless Internet of Things Business

Broadcom LogoCypress Semiconductor Corp. (CY) and Broadcom Limited (AVGO) announced the signing of a definitive agreement under which Cypress will acquire Broadcom's Wireless Internet of Things (IoT) business and related assets. Under the terms of the deal, Cypress will acquire Broadcom's Wi-Fi, Bluetooth and Zigbee IoT product lines and intellectual property, along with its WICED brand and developer ecosystem. The acquisition strengthens Cypress's position in key embedded systems market, such as automotive and industrial, and establishes it as a leader in the high-growth consumer IoT market, a segment that includes wearable electronics and home automation solutions.  The link to the official Cypress press release is below.

http://www.cypress.com/news/cypress-acquire-broadcom-s-wireless-internet-things-business-0

It will be interesting to see how this impacts customers using the Broadcom wireless IoT products, as Cypress likely made the acquisition to help improve the competitiveness of their MCU offering, as opposed to having a more general interest to become a wireless technology provider.  The end result might be that Broadcom wireless solutions may not be the ideal solution for customers using MCU’s that compete with Cypress.  I will also be watching to see whether Cypress reacts to the market trend to eliminate the external MCU by providing a “hostless” solution.  The recently introduced Silex Technology SX-ULPGN is an example of this type of solution (http://www.silexamerica.com/products/connectivity-solutions/embedded-wireless/IoT-Modules/sx-ulpgn-iot-qca4010-radio-module/ ).

This announcement is the latest of a number of significant changes for what was once one of the most successful technology companies in the world.

  • May 28, 2015:  Avago agrees to buy Broadcom (but eventually decides to keep the Broadcom brand).
  • July 22, 2015:  EE Times reports that Broadcom will lay off about 2,500 employees as part of a decision on June 2 to exit the cellular baseband business.

Under the terms of the deal, Broadcom will continue to focus on its wireless connectivity solutions for the access and mobility segments that are not IoT related, including serving set-top box, wireless access, smartphone, laptop and notebook customers.  However, according to a recent article by MacRumors, Broadcom is considering “phasing out of Wi-Fi chip business” completely.

http://www.macrumors.com/2016/03/18/apple-supplier-broadcom-wi-fi-chip-business/

There have been many major acquisitions that have changed the competitive landscape.  There is no company that is not subject to a disruptive change of ownership.  But it is increasingly important to evaluate your supply chain to minimize risk.  We will keep you informed of any relevant news as it becomes public.