Qualcomm has been the leader in the LTE baseband chipset market, and it still is, but it now has a clear strong competitor in the form of MediaTek, according to a new report from research firm Strategy Analytics.
Nvidia said it will wind down its Icera cellular baseband operations in the second quarter of fiscal 2016, which will end this summer. The company said it is open to a sale of the technology or operations.
The next versions of Apple's iPhones will include an LTE modem chipset from Intel, according to a VentureBeat report, a move that would give a major boost to Intel's wireless ambitions and hit Intel rival Qualcomm.
Broadcom got out of the cellular baseband business in mid-2014 because it was losing $2 million per day staying in that market, which is dominated by Qualcomm, Intel, MediaTek and others, according to CEO Scott McGregor.
Intel is going to merge its chipset unit targeting smartphones and tablets with it PC chip unit, arguing that the distinction is blurring between different computing models.
Even though Broadcom is exiting the cellular baseband market, CEO Scott McGregor thinks the company will have a secure place in high-end smartphones thanks to its Wi-Fi chipsets.
Ericsson is exiting the wireless-modem business and will most likely slash about 1,000 jobs as a result. The decision comes as pricing pressure builds in the stand-alone-modem business and more device makers choose to buy system-on-a-chip solutions with modems married to application processors, which Ericsson does not offer.
Broadcom said it will cut 2,500 jobs, about one-fifth of its total workforce, as part of a winding down of its cellular baseband chipset unit. The company made the announcement Tuesday in conjunction with its second-quarter earnings.
Ericsson is not giving up on the market for smartphone modems, but it will have a steep hill to climb to challenge industry leader Qualcomm.
Broadcom is exploring whether to sell off or wind down its cellular baseband business, an acknowledgement of the difficulties it has had in catching up in the LTE market and the dominance of rival Qualcomm in the baseband market.