Avago is buying Broadcom for $37 Billion to create a networking chip giant

The combined company will develop chipsets for wired and wireless networks

Avago Technologies has agreed to buy Broadcom in a deal that will create a networking chip giant with a wide variety of products, including components for the burgeoning IoT sector.

It has offered US$37 billion for Broadcom, including $17 billion in cash and equity valued at approximately $20 billion, it said on Thursday. The combined company will offer products for wired and wireless networks.

Both companies' chips are found in wireline and wireless networks. Avago also makes chips for optical networks, while Broadcom's are used in connected home and car equipment and the Internet of Things. It recently announced support for Apple's HomeKit platform, and chipsets for 802.11ac networks.

The companies expect to close the deal by next April, subject to approval from their shareholders and regulators.

The acquisition is just the latest in a period of consolidations large and small for the chip industry: Intel is picking up some custom server chip technology with the acquisition of Altera, while NXP Semiconductors plans to buy Freescale Semiconductor to build a $40-billion company with strengths in automotive electronics and IoT.

Send news tips and comments to mikael_ricknas@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesbroadcomAvago TechnologiesMergers and acquisitions

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?