Provide 4G chip Broadcom to enter the LTE chip market strongly next year

In the morning news of December 7th, Beijing time, Broadcom announced on Thursday that it will enter the LTE 4G chip market next year and provide mobile phone customers with prototype chips supporting 4G networks.

This move will help the company better challenge its competitor Qualcomm, which has maintained its leading position in the LTE field for many years. This technology has been adopted by mobile operators around the world.

Bob Rango, general manager of Broadcom ’s wireless business, disclosed the LTE plan at the company ’s annual shareholder meeting. He also discussed some of the features that the chip may contain.

Broadcom ’s commitment to specifications for LTE products has made Ed Snyder, an analyst at Charter Equity Research, an investment company, very promising, including voice capabilities and energy efficiency. But to his disappointment, Broadcom did not disclose the commercial timetable of the chip.

"They are still unclear when they can deliver the product to users." Sneijder said. He is worried that this product will not be finally available until 2014. "This is the area where they are most likely to grow." He said.

Broadcom CEO Scott McGregor (Scott McGregor) said that the time interval between prototype chips and commercial products may be between 6 and 18 months, depending on the product's maturity. But McGregor did not disclose the specific time span of the plan, nor did he announce the specific release time of the prototype chip.

"We really feel good about this product." McGregor said in an interview with the media after the conference. He listed LTE as one of the good news investors should pay attention to in the coming year. "We need to enter this field, but have not yet entered."

The latest Apple iPhone and Samsung Galaxy S phones support LTE technology.

Broadcom has supplied short-range connectivity chips such as WiFi for Apple and Samsung, but LTE chips can increase the revenue it gets from each mobile phone. Broadcom said that if it can provide cellular frequency and energy management technology for mobile phones, the company's revenue from each mobile phone will increase from 3 to 6 US dollars to 10 to 30 US dollars.

Broadcom's stock price closed at $ 33.36 in regular trading on the NASDAQ market on Thursday, up 3% from the previous trading day. The company also raised its quarterly financial target on Wednesday.

McGregor said it is unclear whether the company's expected improvement stems from an improvement in the economic environment. But he said that regardless of the macroeconomic environment, "we are expected to maintain a faster growth rate than the entire industry next year."

Broadcom also mentioned the company ’s successful integration of NetLogic Microsystems at a shareholders ’meeting, which was acquired by Broadcom in February this year for $ 3.7 billion.

McGregor did not see any change in the pace of Broadcom ’s mergers and acquisitions, and basically maintained the speed of one transaction per quarter. But he also added: "We do have some acquisition targets."