Investors put their chips on Broadcom mega

Investors put their chips on Broadcom mega

Qualcomm declined to comment. Broadcom's plan to move its home address to the US from Singapore would free its $5.5 billion deal for USA network provider Brocade Communications Systems from a review by the Committee on Foreign Investment in the United States. The news outlet also noted that the stock of Qualcomm went up 14 percent following the news, which is the largest stock movement for the company in almost a decade.

Broadcom was created previous year when Tan's Avago Technologies Ltd. bought Irvine-based chipmaker Broadcom Corp. for $37 billion and then adopted the Broadcom name for the combined company.

Its competitor Qualcomm finds itself in a weakened state.




Apple currently uses both Intel and Qualcomm modem components, but the iPhone maker is now in a dragged-out legal fight over Qualcomm patents and the fees demanded to license the technology of those patents. Before Friday, its shares had slumped 16 percent this year, compared with a 41 percent surge in the Philadelphia Semiconductor Index. Since then, though, smartphone sales growth has slowed and Intel has succeeded in placing its modems in some iPhone models. Qualcomm is looking to complete a $40 billion acquisition of NXP Semiconductors, while Broadcom has a $5.5 billion offer for Brocade Communications that it is waiting to complete. Earlier this week, Qualcomm executives said the legal process would "proceed under the court's schedule", indicating no resolution soon.

The deliberations come as Qualcomm, based in San Diego, California, tries to close its $47-billion purchase of NXP Semiconductors NV. The two companies are already among the top 10 providers of chips in an industry that's consolidating rapidly. Broadcom also supplies is a major supplier of parts for Apple's iPhone, and new management might be better positioned to resolve the dispute, Bloomberg noted.

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