REGISTER | LOGIN
Breaking News
Blog

Broadcom, Qualcomm Groked

NO RATINGS
Page 1 / 2 Next >
View Comments: Newest First | Oldest First | Threaded View
R_Colin_Johnson
User Rank
Author
Re: ...
R_Colin_Johnson   11/10/2017 2:12:05 PM
NO RATINGS
Yes, this comment definitely was meant for: Noise Analysis Beats Google Now https://www.eetimes.com/document.asp?doc_id=1332550

Jimelectr
User Rank
Author
Re: ...
Jimelectr   11/9/2017 1:26:40 AM
NO RATINGS
Hi, Colin. I think you replied to the wrong article!  Perhaps you meant an article about AI? But having worked for Broadcom myself from 2006 to 2016, leaving just about a year ago, I'm not at all surprised to see Hock Tan bidding $100B+ for Qualcomm.  It was just a matter of time.  Get ready for Broad/Qualcom(m) bidding $250B (1/4 trillion $$!!) or so for Intel in a few years!  Interesting that people are saying that Tan wants QCOM for NXP, since one of the first pieces Broadcom Ltd sold off last year was to NXP!  Plus at least a few engineers I knew went to NXP on their own. I was ready to leave on my own last year when I got laid off.  Worked out very well for me, so I have no regrets.  Working for Raytheon now where my job won't be sent overseas (I hope...)

R_Colin_Johnson
User Rank
Author
Re: ...
R_Colin_Johnson   11/4/2017 7:18:24 PM
NO RATINGS
So wise and thoughtful. Yes they'll need some kind of memor this to avoid Learning the same lessons over and over, but I got the impression that it would be less personal and more like quickly binning people instead of keeping secret dossiers.

realjjj
User Rank
CEO
...
realjjj   11/4/2017 5:08:07 PM
NO RATINGS
My first thought was why now, do they know anything on the patent side, is there a major development that is not public yet? Do they know what the EU will be doing, are Apple and Qualcomm about to settle, is there some other development.Then i was thinking that 100B is too low for Qualcomm+NXP (including cash and debt), unless Qualcomm's licensing revenue takes a 60-80% hit. 3rd, about Wi-Fi, they would likely need to divest Qualcomm's side of the business- this one might go to China to make sure that they OK the deal.

Spinning off the licensing business doesn't quite work as the R&D is for the chip side really and they would keep generating patents while the new entity would have to invest in R&D or fade away. A sale might work but it would be very complicated and hard not to lose value.

Snapdragon is the bulk of the revenue and with the AP monopoly in high end, they got towards 20% op margins for QCT so pretty strong even with high pricing pressure in mid and low. Ofc there are risks here, the way they use patents gives them a lot of leverage, the TAM in high end is shrinking as key players use their own silicon and there could be more competition in high end. At Apple, there would be pricing pressure no matter what, assuming Apple doesn't have its own modem soon. Apple had no options for LTE and CDMA suppliers in the last years, they had to use Qualcomm and overpay. Broadcom also needs this part of the business for server and auto, at least if they are aiming for the main SoCs there.

This deal might be the end for Wi-Fi, Wi-Fi losing another key supporter in the fight vs cellular could be the end of it in the long run. That's really sad as consumers are getting robbed by carriers as it is -spectrum should be awarded for free based on the price per GB offered as the main criterion, that's how prices would go from 10$ per GB to 10 cents per GB overnight.

Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed