Broadcom

Broadcom Corporation

Headquarters at UC Irvine's University Research Park
Industry	Semiconductors Electronics
Fate	Acquired by Avago, merged entity is Broadcom Limited
Successor	Broadcom Limited
Founded	August 1991 (1991-08)
Founders	Henry Nicholas Henry Samueli
Headquarters	Irvine, California, United States
Key people	Hock E. Tan (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$8.43 billion (2014)
Net income	US$652 million (2014)
Number of employees	~12,400 (Q1 2016)
Website	www.broadcom.com

Broadcom Corporation was an American fabless semiconductor company in the wireless and broadband communication business. It merged with Avago Technologies. The merged entity is called Broadcom Limited. The division is headquartered in Irvine, California. Broadcom Corporation was founded by a professor-student pair Henry Samueli and Henry Nicholas from the University of California, Los Angeles (UCLA) in 1991. In 1995, the company moved from its Westwood, Los Angeles, 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] Broadcom first landed on the Fortune 500 in 2009. 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]

In May 28, 2015 chip maker Avago Technologies Ltd. agreed to buy Broadcom Corp. for $37 billion in cash and stock. At closing, which is expected by February 1, 2016,^[4] Broadcom shareholders will hold 32% of the new Singapore-based company to be called Broadcom Limited. Hock Tan, Avago President and CEO, will be the new CEO of the new combined company. Dr. Samuelli will be Chief Technology Officer and member of the combined company's board. and Dr. Nicholas will serve in a strategic advisory role within the new company.^[5][6] The new merged entity is named Broadcom Limited but inherits the ticker symbol AVGO. The BRCM ticker symbol was retired.

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/LTE). 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, Asus, Lenovo, Linksys, Logitech, Nintendo, Nokia Siemens Networks, Nortel(Avaya), TiVo, Tenda, and Cisco Systems. In September 2011, Broadcom shut down its digital TV operations.^[7] Broadcom also shut down its Blu-ray chip business. The closure of these businesses began on September 19, 2011.

On June 2, 2014, Broadcom announced intentions to exit the cellular baseband business.^[8]

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.^[9]

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,^[10] Dell Force10 (now Dell Networking) running FTOS/DNOS,^[11][12] all Arista 7050-series switches,^[13] the IBM/BNT 8264, and Juniper QFX3500.^[14]

The latest 'member' of the Trident family is the Trident II XGS which can support up to 32 x 40G ports or 104 x 10G ports (or a mix of both) on a single chip.^[15][16] Examples of switches using this Trident II XGS chip are the Dell Networking S6000,^[17] Cisco Nexus 9000^[18] and some smaller vendors like: EdgeCore AS6700, Penguin Arctica 3200XL or QuantaMesh T5032^[19]

Graphics processing unit

VideoCore is the GPU found on some systems-on-a-chip (SoC)s by Broadcom, the most widely known one being the BCM2835 containing VideoCore IV found in the Raspberry Pi.

Video acceleration

Broadcom Crystal HD does video acceleration.

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 later generations and corresponding iPod touch generations.
• 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.
• In 2013 Broadcom unveiled the first 802.11ac 5G Wifi SOCs which is adopted across many mobile phones including the Samsung Galaxy S4 and S5, the HTC One, and the LG Nexus 5. Additionally, routers from Motorola, Netgear, Huawei and Belkin also include Broadcom's 802.11ac chips.

Notable employees

• Henry Samueli^[20]
• Gottfried Ungerboeck, inventor of trellis coded modulation
• Henry T. Nicholas III
• Sophie Wilson, designer of the ARM CPU instruction set
• 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.^[21] 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.^[22][23]

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.^[24]

Broadcom provided a Linux driver for their Broadcom Crystal HD, and they also hired Eric Anholt, a former Intel employee, to work on a free and open-source graphics device driver for their VideoCore IV.

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 million 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.^[25] On January 24, 2007, it announced a restatement of its financial results from 1998 to 2005 that totaled $2.22 billion.^[26]

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.^[27] 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.^[28]

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.^[29]

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.^[30]

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:^[31]

• 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.^[32]

Besides the NetLogic Microsystems acquisition, through the years, Broadcom has acquired many smaller companies to quickly enter new markets.^[33]

Branding

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.

Raspberry Pi

Broadcom organizes the fabrication of the processor chip (most recently the BCM2835 chip) which is used by the charitable Raspberry Pi foundation.^[46] The foundation requested help from Broadcom making the Raspberry Pi card, a motherboard which is free of DRM or corporate control of any kind, which can interact with hardware, and which can be bought and controlled by children, when educators in Cambridge were worrying that "Something had changed the way kids were interacting with computers. A number of problems were identified: the colonisation of the ICT curriculum with lessons on using Word and Excel, or writing webpages; the end of the dot-com boom; and the rise of the home PC and games console to replace the Amigas, BBC Micros, Spectrum ZX and Commodore 64 machines that people of an earlier generation learned to program on."

See also

References

External links

• Broadcom homepage
• Broadcom SEC Filings
• 20th Century History of Broadcom corporation
• Broadcom Analysis on Wikinvest