samueli2j500
IT & Systems Management

Chip maker Avago may be close to buying Broadcom

Avago Technologies is in advanced talks to acquire Broadcom in a potential deal that could mark the latest consolidation in the global semiconductor industry, according to a report in the Wall Street Journal.

The terms being discussed aren't clear and the deal could still fall through, according to the report, which did not name its sources.

Broadcom makes chips for a wide range of communications products, including wired and wireless networks, connected home and car equipment and the Internet of Things. Avago's silicon goes into industrial and enterprise storage gear as well as wireline and wireless networks. Avago, founded in 1961, is based in San Jose, California, and Singapore. Broadcom is in Irvine, California, and started in 1991.

Though Broadcom is well known as an aggressive competitor in communications chips, especially as a rival and longtime patent adversary to Qualcomm, Avago has the higher market capitalization, at almost $37 billion. Broadcom weighed in at about $32 billion on Wednesday. Both companies' shares were up significantly in midday trading.

Avago acquired storage and networking company LSI for $6.6 billion in 2013 and later sold LSI's flash storage business to Seagate and its networking arm to Intel.

A buyout would follow two other big chip deals announced in March. NXP Semiconductors and Freescale Semiconductor plan to merge into a $40 billion company with strengths in IoT and cars. In addition, Intel plans to acquire Altera for its custom server chip technology. Meanwhile, hedge fund Jana Partners has taken a large stake in Qualcomm and called on that company to reorganize, according to news reports.

A Broadcom spokesman declined to comment. Avago could not immediately be reached for comment.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

PREVIOUS ARTICLE

« Judge classifies as class action an email scanning lawsuit against Yahoo

NEXT ARTICLE

New FCC rules would crack down on spam texts, unwanted calls »
author_image
IDG News Service

The IDG News Service is the world's leading daily source of global IT news, commentary and editorial resources. The News Service distributes content to IDG's more than 300 IT publications in more than 60 countries.

  • Mail

Recommended for You

International Women's Day: We've come a long way, but there's still an awfully long way to go

Charlotte Trueman takes a diverse look at today’s tech landscape.

Trump's trade war and the FANG bubble: Good news for Latin America?

Lewis Page gets down to business across global tech

20 Red-Hot, Pre-IPO companies to watch in 2019 B2B tech - Part 1

Martin Veitch's inside track on today’s tech trends

Poll

Do you think your smartphone is making you a workaholic?