Apple Supplier Broadcom Reportedly Phasing Out Wi-Fi Chip Business

Communications chip maker and Apple supplier Broadcom is planning to phase out its Wi-Fi chip business in order to streamline its workforce and product line, according to industry sources in Taiwan (via DigiTimes).

The move follows the company's recent acquisition by Avago Technologies and forms part of a larger strategy to allocate more resources for research and development in the fiber-optic and server sectors, according to the report.

broadcom
The Wi-Fi chip business is said to yield relatively low gross margins for Broadcom compared to other product lines. Sources cited fierce price wars for mass-market applications such as notebooks, tablets, TVs and smartphones as the reason behind the decision to phase out the company's involvement in the sector.

Broadcom has reportedly almost halved the workforce stationed at its plant in Taipei, while companies such as MediaTek, Realtek Semiconductor and RDA Microelectronics have already received a pull-in of short lead-time orders from Broadcom's customers in the Wi-Fi chip sector.

It's unclear whether the phase out, if confirmed, is a disruption for Apple as it gears up for annual product refreshes across its desktop and mobile devices. Apple currently uses Broadcom chips in its Apple Watch, iPhones and iPads, as well as its line of Macs that support 802.11ac, including the MacBook Air, Retina MacBook Pro, and iMac.

Two years ago, Apple hired two high-level baseband hardware engineers who left their longtime positions at Broadcom to join an engineering team at Cupertino. In 2013, Apple acquired low-power wireless chip provider Passif Semiconductor. The acquisitions were seen as part of a larger strategy by the company to better control the development and production of its core technologies.

Top Rated Comments

Chupa Chupa Avatar
98 months ago
Perhaps Broadcom is phasing out this division because Apple is moving to a new supplier.
Actually the other way around. Broadcom wants to lower its exposure to Apple, especially in areas where the downside is greater than the upside, something that became fairly heavy pre-merger. The increased diversification the merger brought + shedding low profit businesses will make company earnings less dependent on sales to one company. At one point 25% of Broadcom's earnings were based on Apple sales.
Score: 9 Votes (Like | Disagree)
LordVic Avatar
98 months ago
This news is bigger than Apple.

broadcom is one of the worlds largest suppliers of Wireless networking parts for integrated systems. There are countless motherboards and daughterboards over the course of probably the better part of decades that feature broadcom networking components.
Score: 5 Votes (Like | Disagree)
KPOM Avatar
98 months ago
Perhaps Broadcom is phasing out this division because Apple is moving to a new supplier.
Score: 4 Votes (Like | Disagree)
Porco Avatar
98 months ago
So Broadcom are becoming Narrowcom?
Score: 4 Votes (Like | Disagree)
maflynn Avatar
98 months ago
Apple will love to choose Samsung as a partner aga!n ;)
Apple chooses them for many different components, so they very well could for this as well
Score: 4 Votes (Like | Disagree)
DCIFRTHS Avatar
98 months ago
True. There are enough chinese no-name companies willing to be the lowest bidder for whatever chips are needed for the iPhone 7S.
I hope it's not a no-name company, and whoever they source form is able to supply all of Apple's needs - including all of the computers and tablets they still manufacture...
Score: 3 Votes (Like | Disagree)

Popular Stories

iOS 17

Apple Releases iOS 17.0.2 and iPadOS 17.0.2 for All iPhones and iPads

Tuesday September 26, 2023 12:47 pm PDT by
Apple today released iOS 17.0.2 and iPadOS 17.0.2 updates, with the software coming five days after the releases of iOS 17.0.1 and iPadOS 17.0.1. Today's iOS 17.0.2 and iPadOS 17.0.2 updates arrive as build 21A351 and can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Note that iOS 17.0.2 was previously made available for iPhone...
Apple WWDC23 macOS Sonoma hero

macOS Sonoma Launching This Week With These New Features

Sunday September 24, 2023 12:45 pm PDT by
Apple previously announced that macOS Sonoma will be released this Tuesday, September 26. The free software update includes many new features and changes for the Mac, including the five that we have highlighted below. In addition to these five features, we have shared the full release notes for macOS Sonoma below for a complete overview of everything new. Desktop Widgets macOS Sonoma...
iPhone 15 Pro Lineup Feature

Kuo: iPhone 15 Pro Overheating Issues Likely Due to Thermal Compromises, Not 3nm Node

Tuesday September 26, 2023 9:12 am PDT by
Complaints about heat issues with the iPhone 15 Pro models are not related to TSMC's 3-nanometer node that was used for the A17 Pro chip, according to well-respected Apple analyst Ming-Chi Kuo. Kuo says that overheating could be caused by "compromises made in the thermal system design" that allowed Apple to cut down on the weight of the iPhone 15 Pro models. Kuo says that the reduced heat...
iPhone 16 Side Feature

iPhone 16 to Include an Additional Capacitive 'Capture' Button

Monday September 25, 2023 12:50 pm PDT by
The iPhone 16 series is expected to gain an additional capacitive button, known internally as the "Capture Button." Codenamed "Project Nova," the button is likely to be one of the main selling points of the iPhone 16 lineup, assuming it gets past the initial testing phase. The Capture Button is located on the same side as the Power button, only positioned slightly lower - where the mmWave cutout...
ipad mini blue

Apple to Launch iPad Mini 7 Later This Year, Industry Report Suggests

Monday September 25, 2023 3:16 am PDT by
Apple could be preparing to release a seventh-generation iPad mini before the end of the year, based on a new report by DigiTimes. In an article discussing stagnating global tablet demand in the second half of 2023, the Taiwan-based outlet forecasts an uptick in Apple's share of the market owing to orders for a "small-size" iPad in the fourth quarter. From the report (see bold): In the...
macos sonoma 4

Apple Releases macOS Sonoma With New Widget Features, Safari Updates, Screen Sharing Improvements and More

Tuesday September 26, 2023 10:01 am PDT by
Apple today released macOS 14 Sonoma, the newest version of the operating system that runs on the Mac. macOS Sonoma has been in beta testing for several months, and it is compatible with the 2019 and later iMac, the iMac Pro, the 2018 and later Mac mini, the 2018 and later MacBook Pro, the 2019 and later Mac Pro, and the Mac Studio. The ‌macOS Sonoma update can be downloaded for free on...