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.
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.
Broadcom CEO Scott McGregor is banking on the idea that there will be a wide array of companies interested in creating wearable computing devices, and that Broadcom will be able to sell its wireless chips into that new category.
Broadcom announced its intention to enter the LTE modem market with a chip the company boasted as one of the world's smallest, fastest and most capable. The chip, set to ship next year, puts Broadcom on a collision course with LTE modem market leaders Qualcomm and Samsung. The move will also create more competition for Intel, which has announced its intention to enter into the LTE modem market.
BARCELONA, Spain--Broadcom CEO Scott McGregor said the company plans to make money off its patent portfolio in the future, comments that indicate Broadcom is following the rest of the wireless