Apple has used Broadcom Wi-Fi solutions for Apple Watch and the iPhone over time, but according to a new supply chain report, that may be coming to an end. The report notes that Broadcom is looking to phase out its Wi-Fi chip business in a move to streamline its workforce and product offerings following its acquisition by Avago Technologies.
The report further noted that "Broadcom has moved to significantly reduce resources allocated to its Wi-Fi chip business, which yields relatively low gross margins compared to other product lines due to fierce price competition in the market for mass-market applications such as notebooks, tablets, TVs and smartphones, said the sources.
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, the sources noted.
Following its merger with Avago, Broadcom is expected to allocate more R&D resources to chips solutions for the fiber-optic and server sectors. In addition, Broadcom has almost halved the workforce stationed at its office in Taipei."
Because Broadcom has yet to confirm this position or the timing of such a move officially, this report is under our news/rumor category.