Broadcom
Type | Public |
---|---|
Traded as |
NASDAQ: BRCM NASDAQ-100 Component S&P 500 Component |
Industry |
Semiconductors Electronics |
Founded | August 1991 |
Founder(s) |
Henry Nicholas Henry Samueli |
Headquarters | Irvine, California, U.S. |
Key people |
Scott A. McGregor (President & CEO) Henry Samueli (CTO) |
Products |
Integrated Circuits Cable Converter Boxes Gigabit Ethernet Wireless networks Cable modems Mobile communications Network Switches Digital Subscriber Line Server farms Processors Bluetooth VoIP Near Field Communication GPS Metropolitan Area Network |
Revenue | US$8.01 billion (2012) |
Net income | US$719 million (2012) |
Employees | ~11,750 (Q2 2013) |
Website | www.broadcom.com |
Broadcom Corporation is an American fabless semiconductor company in the wireless and broadband communication business. The company is headquartered in Irvine, California. Broadcom was founded by a professor-student pair Henry Samueli and Henry T. Nicholas III from the University of California, Los Angeles (UCLA) in 1991. In 1995, the company moved from its Westwood, California, office to Irvine, California.[1] In 1998, Broadcom became a public company on the NASDAQ exchange (ticker symbol: BRCM) and now employs approximately 11,750 people worldwide in more than 15 countries.
Broadcom is among Gartner's Top 10 Semiconductor Vendors by revenue.[2] In 2012, Broadcom's total revenue was $8.01 billion. In 2013, Broadcom was No. 327 on the Fortune 500, climbing 17 places from its 2012 ranking of No. 344.[3] Broadcom first landed on the Fortune 500 in 2009. The Broadcom logo was designed by Eliot Hochberg, based on the logo for the company's previous name, Broadband Telecom. The Broadband Telecom logo was designed by co-founder Henry Nicholas' then-wife Stacey Nicholas, who was inspired by the mathematical sinc function.
Products
Broadcom's product line spans computer and telecommunication networking: the company has products for enterprise/metropolitan high-speed networks, as well as products for SOHO (small-office, home-office) networks. Products include transceiver and processor ICs for Ethernet and wireless LANs, cable modems, digital subscriber line (DSL), servers, home networking devices (router, switches, port-concentrators) and cellular phones (GSM/GPRS/EDGE/W-CDMA). It is also known for a series of high-speed encryption co-processors, offloading this processor-intensive work to a dedicated chip, thus greatly speeding up tasks that utilize encryption. This has many practical benefits for e-commerce, and PGP or GPG secure communications.
The company also produces ICs for carrier access equipment, audio/video processors for digital set-top boxes and digital video recorders, Bluetooth and Wi-Fi transceivers, and RF receivers/tuners for satellite TV. Major customers include Apple, Hewlett-Packard, Motorola, IBM, Dell, Lenovo, Linksys, Logitech, Nintendo, Nokia Siemens Networks, Nortel(Avaya), TiVo, Tenda, and Cisco Systems. In September 2011, Broadcom shut down its digital TV operations.[4] Broadcom also shut down its Blu-ray chip business. The closure of these businesses began on September 19, 2011.
NICs and networking
Vendors have included Broadcom NICs in their products. For example the Dell blade-server M610 has two embedded Gigabit NetXtreme 5709 NICs.[5]
Trident+ ASIC
Another large market is hardware for switches: some vendors offer switching equipment based on Broadcom hardware and firmware (e.g. Dell PowerConnect classics) while other well-known vendors do use the Broadcom hardware but write their own firmware. The latest Broadcom Trident+ ASIC is used in many high-speed 10Gb+ switches from the largest switch-vendors such as Cisco Nexus switches running NX-OS,[6] Dell Force10 running FTOS,[7][8] all Arista 7050-series switches,[9] the IBM/BNT 8264, and Juniper QFX3500.[10]
Consumer design components
Broadcom also provides components for a number of high-profile consumer devices:
- Broadcom supplies the WiFi+Bluetooth combo chip for Apple iPhone 3GS and iPod touch second generation.
- In Q2 2005, Broadcom Corporation announced it would be providing Nintendo its “online solution on a chip” as deployed in millions of notebooks and PDAs across the globe, enabling Nintendo 802.11b connectivity with DS and 802.11g for the Wii. More specifically, Broadcom would provide Bluetooth connectivity for Wii's controller.[citation needed]
- In 2012 Broadcom started producing systems on the chips and first system on chip which produced by Broadcom is BCM28155 which used in Samsung Galaxy S II Plus and Samsung Galaxy Grand.
Notable employees
- Henry Samueli [11]
- Gottfried Ungerboeck, inventor of trellis coded modulation
- Henry T. Nicholas III
- Sophie Wilson, designer of the ARM CPU instruction set
- Larry Wall, creator of the Perl programming language
- Eben Upton, creator of the Raspberry Pi single-board computer
Broadcom and Linux
Some free and open source drivers are available and included in the Linux kernel source tree for the 802.11b/g/a/n family of wireless chips Broadcom produces.[12] Since the release of the 2.6.26 kernel some Broadcom chips have kernel support but require external firmware to be built.
In 2003 the Free Software Foundation accused Broadcom of not complying with the GNU General Public License as Broadcom distributed GPL code in a driver for its 802.11g router chipset without making that code public. The chipset was adopted by Linksys which was later purchased by Cisco. Cisco eventually published source code for the firmware for its WRT54G wireless broadband router under the GPL-license.[13][14]In 2012 the Linux Foundation listed Broadcom as one of the Top 10 companies contributing to the development of the Linux Kernel for 2011, placing it in the top 5 percent of an estimated 226 contributing companies. The foundation's Linux Kernel Development report also noted that, during the course of the year, Broadcom submitted 2,916 changes to the kernel. In October, Broadcom's commitment to the free software community was underlined when the previously proprietary parts of the Raspberry Pi userland were released under a BSD-style license, making it "the first ARM-based multimedia SoC with fully functional, vendor-provided (as opposed to partial, reverse-engineered) fully open-source drivers", although this claim has not been universally accepted.[15]
Manufacturing
Broadcom is known as a fabless company. It outsources all semiconductor manufacturing to Asian merchant foundries, such as GlobalFoundries, Semiconductor Manufacturing International Corporation, Silterra, TSMC, and United Microelectronics Corporation. The company is based in Irvine, California, in the University Research Park on the University of California, Irvine campus, after a 2007 move from its previous campus near the Irvine Spectrum. It has many other research and development sites including Silicon Fen, Cambridge (UK), Bangalore and Hyderabad in India, Richmond (near Vancouver) and Markham (near Toronto) in Canada, and Sophia Antipolis in France.
Stock options scandal
On July 14, 2006, Broadcom announced it had to subtract $750,000,000 from earnings due to stock options irregularities. On September 8, 2006, the amount was doubled to $1.5 billion. The company may also owe additional taxes.[16] On January 24, 2007, it announced a restatement of its financial results from 1998 to 2005 that totaled $2.22 billion.[17]
On May 15, 2008, Broadcom CTO Samueli resigned as chairman of the board and took of a leave of absence as Chief Technology Officer after being named in a civil complaint by the U.S. Securities and Exchange Commission (SEC).
On June 5, 2008, Broadcom co-founder and former CEO Henry Nicholas and former CFO William Ruehle were indicted on charges of illegal stock-option backdating. Nicholas was also indicted for violations of federal narcotics laws.[18] However, in December 2009, federal judge Cormac J. Carney threw out the options backdating charges against Nicholas and Ruehle after finding that federal prosecutors improperly tried to prevent three defense witnesses from testifying.[19]
Qualcomm litigation and settlement
On April 26, 2009, Broadcom settled four years of legal battles over wireless and other patents with Qualcomm Inc., another fabless semiconductor company headquartered in San Diego, California.[20]
The deal ended the patent litigation as well as complaints of anti-competitive behavior before trade commissions in the United States, Europe, and South Korea. As part of the settlement, Qualcomm paid $891 million in cash to Broadcom over a four-year period ending June 2013.[21]
In June 2007, the U.S. International Trade Commission blocked the import of new cell phone models based on particular Qualcomm microchips. They found that these Qualcomm microchips infringe patents owned by Broadcom.
BroadVoice
Broadcom authored its own VoIP codecs in 2002, and released them as open source with LGPL license in 2009:[22]
- BroadVoice 16 with declared bitrate 16 kbit/s and audio sampling frequency 8 kHz
- BroadVoice 32 with declared bitrate 32 kbit/s and sampling rate of 16 kHz (note however that X-Lite SIP phone's menu declares bitrate 80,000 bit/s)
Acquisitions
In September 2011, Broadcom bought NetLogic Microsystems for a $3.7 billion deal in cash, excluding around $450 million of NetLogic employee shareholdings, which will transfer to Broadcom.[23]
Besides the NetLogic Microsystems acquisition, through the years, Broadcom has acquired many smaller companies to quickly enter new markets.[24]
Date | Acquired company | Amount | Expertise |
---|---|---|---|
January 1999 | Maverick Networks | $104M in Stock | Multi-layer switches for corporate networks |
April 1999 | Epigram | $316M in stock | Home networking using telephone wiring, WiFi |
June 1999 | Armedia Inc. | $67.2M in stock | Digital Video Decoders[25] |
August 1999 | HotHaus Technologies | $280M in stock | DSP software for VOIP |
August 1999 | Altocom | $180M in stock | Software modem software |
January 2000 | BlueSteel Networks | $123M in stock | Security processors |
March 2000 | Digital Furnace Corp | $136M in stock | Data compression software |
March 2000 | Stellar Semiconductor | $162M in stock | 3D graphics processors |
June 2000 | Pivotal Technologies | $242M in stock | Digital video chips |
July 2000 | Innovent Systems | $500M in stock | Bluetooth radios |
August 2000 | Puyallup Integrated Circuit Company | IC design and IC macro blocks | |
July 2000 | Altima Communications | $533M in stock | Networking chips |
October 2000 | Newport Communications | $1240M in stock | 10Gbit Ethernet transceivers |
October 2000 | Silicon Spice | $1000M in stock | DSP chips for VOIP |
November 2000 | Element 14 | $594M in stock | DSL chipsets |
November 2000 | SiByte, Inc | $2060M in stock[26] | MIPS, Broadband microprocessors |
December 2000 | Allayer Communications | $271M in stock | Enterprise and optical networking chips |
January 2001 | VisionTech, Ltd. | $777M in stock | MPEG-2 compression/decompression of PVRs |
January 2001 | ServerWorks Corp. | $1003M in stock | I/O controllers for servers and workstations |
July 2001 | PortaTec Corporation | Mobile devices | |
July 2001 | Kimalink | Wireless and mobile ICs | |
May 2002 | Mobilink Telecom, Inc. | $5.6M shares of stock | Baseband processors for cellphones |
March 2003 | Gadzoox Networks | $5.8M in cash | Storage-area networks |
January 2004 | RAIDCore, Inc. | $16.5M in cash | RAID software |
April 2004 | M-Stream Inc. | $8.7M in cash and 27000 shares of stock | Technology to improve wireless reception |
April 2004 | Sand Video, Inc. | $77.5M in stock and $7.4M in cash | Video compression technology |
April 2004 | WIDCOMM, Inc. | $49M in cash | Software for Bluetooth systems |
April 2004 | Zyray Wireless, Inc. | $96M in stock | Baseband processors for WCDMA |
September 2004 | Alphamosaic, Ltd. | $123M in stock | Video processors for mobile devices |
February 2005 | Alliant Networks, Inc. | Cellular gateway products | |
March 2005 | Zeevo, Inc. | $26.4M in cash and $2.6M in stock | Bluetooth headset products |
July 2005 | Siliquent Technologies, Inc. | $76M in cash | 10Gbit Ethernet interface controllers |
October 2005 | Athena Semiconductors, Inc. | $21.6M in cash | Digital TV tuners and Wifi technology |
January 2006 | Sandburst Corporation | $75M in cash and $5M in stock | SOC chips for Ethernet packet switching |
November 2006 | LVL7 Systems, Inc. | $62M in cash | Networking software |
May 2007 | Octalica, Inc. | $31M in cash | Multimedia Over Coax technology |
June 2007 | Global Locate, Inc. | $146M in cash | GPS chips and software |
March 2008 | Sunext Design, Inc. | $48M in cash | Optical disk drive technologies |
August 2008 | AMD (DTV Processor Division) | $141.5M in cash (Original deal was $192.8M)[27] | Xilleon DTV processor chips, software and TV tuners |
December 2009 | Dune Networks[28] | $178M in cash | High speed network switches |
February 2010 | Teknovus[29] | $123M in cash | Ethernet Passive Optical Network (EPON) chipsets and software |
June 2010 | Innovision Research & Technology plc[30] | $47.5M in cash | Near field communication expertise and IP |
October 2010 | Beceem Communications[31] | $316M in cash | 4G LTE/WiMax expertise |
November 2010 | Gigle Networks[32] | $75M in cash | Multimedia home networking |
April 2011 | Provigent Ltd.[33] | $313M in cash | Microwave Backhaul |
May 2011 | SC Square Ltd.[34] | $41.9M in cash | Israel-based security software developer |
September 2011 | NetLogic Microsystems | $3.7 billion | Next-generation Internet networks |
March 2012 | BroadLight[35] | $230M in cash | Israel-based fiber access PON developer |
June 2012 | Wisair | $1M in cash | Short-range Wireless data transmission |
January 2013 | BroadLogic | video encoders/decoders,[36] QAM modulation and wideband receivers | |
September 2013 | Renesas Mobile Corporation | $164M in cash | Mobile chipset platforms (LTE-Related Assets) |
See also
References
- ↑ Kotkin, Joel (January 24, 1999). "Grass Roots Business; A Place To Please The Techies - New York Times". The New York Times. Retrieved 2008-04-25.
- ↑ Deffree, Suzanne (April 19, 2011). "Broadcom moves on to top 10 list as 2010 semi revenue records more than 30% growth". EDN.com. Retrieved 2011-05-05.
- ↑ [http://money.cnn.com/magazines/fortune/fortune500/2013/snapshots/11071.html?iid=F500_fl_list. "Broadcom - Fortune 500 2013 - Fortune"]. Fortune. May 6, 2013. Retrieved 2013-05-06.
- ↑ Junko Yoshida, EE Times. "Broadcom closes DTV, Blu-ray chip businesses." September 22, 2011. Retrieved October 4, 2011.
- ↑ Technical specs on the Dell PowerEdge M610, visited January 27, 2012
- ↑ Cisco rolls out Nexus 3000, visited January 28, 2012
- ↑ The Register on Force10 cranks Ethernet switches to 40 Gigabits, April 23, 2011; visited January 28, 2012
- ↑ Jason Edelman Blog on 40 Gbps datacenter switching, December 10, 2011. Retrieved May 17, 2012
- ↑ The Register: Arista punts 10/40 GbE juice-sipper, visited May 18, 2012
- ↑ Lightreading Re:Some Pizza, April 30, 2012. Visited: May 18, 2012
- ↑ Broadcom To Give Rival A Run For Its Money. UTSanDiego.com (2013-05-09). Retrieved on 2013-12-08.
- ↑ b43 Sipsolutions.net, Linux Wireless
- ↑ "Linksys routers caught up in open source dispute". TechTarget. October 20, 2003.
- ↑ Lyons, Daniel (October 14, 2003). "Linux's Hit Men - Forbes.com". Forbes. Retrieved January 28, 2012.
- ↑ "Raspberry Pi maker says code for ARM chip is now open source". Ars Technica. Retrieved 3 November 2012.
- ↑ "Broadcom's Options Bombshell". BusinessWeek. September 9, 2006. Retrieved 2006-09-09.
- ↑ "A $2.2 Billion Charge at Broadcom". The New York Times. January 24, 2007. Retrieved 2012-02-15.
- ↑ "Drugs, hookers and cranked customers: Ex-Broadcom boss indicted". The Register. June 5, 2008. Retrieved 2008-06-06.
- ↑ Flaccus, Gillian. Broadcom backdating case dismissed. Associated Press via San Francisco Chronicle, 2009-12-16.
- ↑ Jones, Ashby (April 27, 2009). "All Quiet on the Western Front: Broadcom, Qualcomm Reach $891M Deal". Law Blog (The Wall Street Journal). Retrieved 2011-08-06.
- ↑ "Qualcomm and Broadcom Reach Settlement and Patent Agreement". Broadcom. Retrieved 12 July 2013.
- ↑ "Broadcom offers LGPL Voice Codecs".
- ↑ "Broadcom buys NetLogic for $3.7bn". Retrieved September 12, 2011.
- ↑ "A list of acquisitions". Broadcom.com.
- ↑ Broadcom Acquires Armedia, Maker of Digital Video Decoders http://articles.latimes.com/1999/jun/02/business/fi-43234
- ↑ Broadcom acquires MIPS core provider SiByte. Design-reuse.com. Retrieved on 2013-12-08.
- ↑ "Broadcom Completes Acquisition of Digital TV Business from AMD for $50M less". Broadcom.com. October 28, 2008.
- ↑ "Broadcom to buy Dune Networks for cloud switches". News.techworld.com.
- ↑ "Broadcom to acquire Teknovus". Broadcom.com. March 8, 2010.
- ↑ "Broadcom to enter NFC market, buys Innovision for $47.5m". Nearfieldcommunicationsworld.com.
- ↑ "Broadcom.com". Broadcom.com. October 13, 2010.
- ↑ "Broadcom.com". Broadcom.com. November 22, 2010.
- ↑ "Broadcom.com". Broadcom.com.
- ↑ / Broadcom Completes Acquisition of SC Square Ltd.
- ↑ "/ Broadcom Enters Agreement to Acquire BroadLight". Broadcom.com.
- ↑ Broadcom snags BroadLogic. Cedmagazine.com (2013-01-30). Retrieved on 2013-12-08.
External links
- Broadcom homepage
- Broadcom SEC Filings
- 20th Century History of Broadcom corporation
- Broadcom Analysis on Wikinvest
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