According to reports from Taiwanese site Digitimes, it seems that Broadcom is considering seriously the possibility of opting out from the turnover of the WiFi chip, with the aim of optimizing the use of the workforce and the development of product lines.
The move, which may at this point has yet to be confirmed, following the recent acquisition of Broadcom by Avago Technologies, adopted as part of a broader strategy to allocate more resources to research and development activities related to optical fiber and context server.
Commercial activities related to WiFi chips allow to obtain lower gross margins than other product lines, the sources cited strong competition on prices for chips destined for the mass market products (laptops, tablets, TVs, smartphones) as reason behind the decision to call off the field.
Broadcom meanwhile, he has already halved the workforce stationed in Taipei and other companies such as MediaTek, Realtek Semiconductor and RDA Microelectronics have already received a number of short-term orders for delivery from some customers who normally have turned to for Broadcom WiFi chip .
Currently rumors have yet to be officially confirmed and is therefore not possible to know which time frame will eventually be completed the company's plan.
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