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Headquarters at UC Irvine's University Research Park | |
| Company type | Subsidiary |
|---|---|
| Nasdaq: BRCM (1998–2016) | |
| Industry | |
| Founded | August 1991; 34 years ago (1991-08) |
| Founders | |
| Fate | Became a wholly owned subsidiary ofBroadcom Limited after being acquired by Avago Technologies |
| Successor | Itself (as a wholly owned subsidiary of Broadcom Inc.) |
| Headquarters | Irvine, California, United States |
Key people |
|
| Products | |
| Parent | Broadcom Inc. (2016–present) |
| Website | broadcom.com |
Broadcom Corporation was an Americanfabless semiconductor company that made products for the wireless and broadband communication industry. It was acquired byAvago Technologies for $37 billion in 2016 and currently[update] operates as a wholly owned subsidiary of the merged entityBroadcom Inc.
Founded in 1991 by a professor-student pairHenry Samueli andHenry Nicholas from theUniversity of California, Los Angeles, the company moved from itsWestwood, Los Angeles, office toIrvine, California, in 1995. Broadcom became apublic company three years later with a listing on theNasdaq. The company was known for its aggressive acquisition strategy, which led to significant growth and market share.

Broadcom Corporation was founded by professor-student pairHenry Samueli andHenry Nicholas fromUCLA in 1991. In 1995 the company moved from itsWestwood, Los Angeles, office to Irvine, California.[1] In 1998, Broadcom became apublic company on theNASDAQ exchange (ticker symbol: BRCM) and employs about 11,750 people worldwide in more than 15 countries.[when?]
Broadcom Corporation acquiredServerWorks Corporation, a maker ofchipsets forIA-32-based servers, in 2001 for $957 million. This acquisition was one in a string of purchases of companies by Broadcom in the beginning of the 2000s. Unlike the others, which were struggling start-ups, ServerWorks was revenue-generating and profitable.[2][3][4]
In 2012, Broadcom's total revenue was $8.01 billion. As of 2011, Broadcom was amongGartner's Top 10 Semiconductor Vendors by revenue.[5] Broadcom first landed on theFortune 500 in 2009,[6] and climbed to spot #327 in 2013.[7]
In June 2007, theU.S. International Trade Commission blocked the import of new cell phone models based on particular Qualcomm microchips. They had found that theseQualcomm microchips infringed on patents owned by Broadcom.[8] In January 2017, the FTC sued Qualcomm, who allegedly made use of unlawful tactics to maintain "a monopoly on cellular-communications chips."[9]
On April 26, 2009, Broadcom settled its four-year legal battle withQualcomm over wireless and other patents.[10] The deal also ended the complaints of anti-competitive behavior. As part of the settlement, Qualcomm paid $891 million in cash to Broadcom over a four-year period ending June 2013.[11]
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In March 2006, a report by the Center for Financial Research and Analysis identified Broadcom as one of 17 companies "at risk" for havingback-dated stock options grants between 1997 and 2002.[12][13] On May 18, 2006, amid media reports about options practices, Broadcom said it had started an internal review of itsstock options grants.[14] On June 12, 2006, Broadcom announced it had received a "request for information" from theU.S. Securities and Exchange Commission (SEC), and that it might soon be the subject of an informal inquiry.[12]
On July 14, 2006, Broadcom estimated it would have to subtract $750 million from earnings due to stock options irregularities. On September 8, 2006, the company announced the amount was at least $1.5 billion, "and could be substantially more."[13][14] On December 18, 2006, the SEC opened a formal investigation of Broadcom's options practices.[15][16] On January 24, 2007, Broadcom announced a restatement of its financial results from 1998 to 2005 to include a total of $2.24 billion-worth of expenses related to stock option-based compensation.[17] The grants remained the subject of the formal inquiry by the SEC, and an informal inquiry by federal prosecutors.[17]
In between March and May 2008, the SEC announced charges against Broadcom for fraudulently backdating stock options for nearly five years, from June 1998 to May 2003.[18] In its complaint, the SEC alleged that Broadcom's top officers at the time had misrepresented the dates on which stock options were granted to executives and employees. In describing the scheme, the SEC said: "Through backdating, Broadcom made it appear that the options were granted at times corresponding to low points of the closing price of Broadcom's stock — despite the fact that the purported grant date bore no relation to when the grant was actually approved. This resulted in artificially and fraudulently low exercise prices for those options."[18]
On May 15, 2008, Broadcom co-founder and CTO Henry Samueli resigned as chairman of the board, and took a leave of absence as Chief Technology Officer.[citation needed] On June 5, 2008, Broadcom co-founder and former CEOHenry Nicholas and former CFO William Ruehle were indicted on charges of illegalstock-option backdating. Nicholas was also indicted for violations of federal narcotics laws.[19] However, in December 2009, federal judgeCormac J. Carney threw out the options backdating charges against Nicholas and Ruehle because ofprosecutorial misconduct, after finding that federal prosecutors improperly tried to prevent three defense witnesses from testifying.[20][21]
In 2008, theU.S. Securities and Exchange Commission (SEC) charged executives of Broadcom with fraudulently backdating stock options. Through the scheme, company executives allegedly avoided reporting $2.22 billion in compensation expenses. The company also allegedly overstated its income by between 15% and 422%, and understated its loss by between 16% and 38%, according to the SEC.[22] A judge dismissed the charges against company executivesHenry Nicholas and Henry Samueli, citing witness intimidation on the part of prosecutors. The judge also dismissed charges against chief financial officer William Ruehle.[23] In the end, the company had to pay $160M to settle with the SEC.[24]
On May 28, 2015, chip makerAvago Technologies Ltd. agreed to buy Broadcom Corp. for $37 billion in cash and stock. At closing, which completed on February 1, 2016,[25] Broadcom shareholders held 32% of the new Singapore-based company to be called Broadcom Limited. Hock Tan, Avago President and CEO, was named CEO of the new combined company. Dr. Samueli became Chief Technology Officer and member of the combined company's board, and Dr. Nicholas serves in a strategic advisory role within the new company.[26][27]
The new merged entity was initially named Broadcom Limited but inherits the ticker symbol AVGO. The BRCM ticker symbol was retired.

Broadcom's product line spanscomputer andtelecommunication networking products. Examples of such are products for enterprise/metropolitan high-speed networks, as well as products forsmall office/home office (SOHO) networks. Additionally, the company produces transceiver and processor ICs forEthernet and wirelessLANs,cable modems,digital subscriber lines, servers, home networking devices (router, switches, port-concentrators) andcellular phones (GSM/GPRS/EDGE/W-CDMA/LTE). It is also known for its series of high-speed encryption co-processors, which serve to offload processor-intensive tasks to a dedicated chip.
The company also has a history of producing ICs for carrier access equipment, audio/video processors for digitalset-top boxes anddigital video recorders,Bluetooth andWi-Fi transceivers, and RF receivers/tuners forsatellite TV. On September 19, 2011, Broadcom shut down its digital TV operations, along with its Blu-ray chip business.[28]
On June 2, 2014, Broadcom announced its intentions to exit the cellular baseband business.[29][30]
Some vendors offer switching equipment based on Broadcom hardware and firmware (e.g.Dell PowerConnect classics) while other well-known vendors use Broadcom hardware with their own firmware. The Broadcom Trident+ASIC has been used in many high-speed10Gb+ switches from vendors such asCisco Nexus switches runningNX-OS,[31]DellForce10 (nowDell Networking) runningFTOS/DNOS,[32][33] allArista 7050-series switches,[34] theIBM/BNT 8264, and theJuniper QFX3500.
As of April 2014[update], 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, as well as a mix of both, on a single chip.[35][36] Examples of switches using the Trident II XGS chip are the Dell Networking S6000,[37] Cisco Nexus 9000,[38] and some smaller vendors like the EdgeCore AS6700, Penguin Arctica 3200XL, and QuantaMesh T5032.[39]
VideoCore is theGPU found on somesystems-on-a-chips by Broadcom, the most widely known one being the BCM2835, containing a VideoCore IV found in theRaspberry Pi.
TheBroadcom Crystal HD is capable of video acceleration.

The Broadcom "BCM43" series of chips implements WiFi support for manyAndroid andiPhone devices. Models include the BCM4339 used in phones such as theNexus 5 (2013) and the BCM4361 used in theSamsung Galaxy S8 (2017). These are system-on-a-chip devices with aCortex R4 for processing theMAC andMLME layers and a proprietary Broadcom processor for the802.11 physical layer.[40] The chips are also capable of handlingWi-Fi Direct,Bluetooth, andNFC signals.[41]
Broadcom authored its own VoIP codecs in 2002, and released them as open source with theLGPL license in 2009. Such codecs are:[43]

Some free and open source drivers are available and included in theLinux kernel source tree for the 802.11b/g/a/n family of wireless chips that Broadcom produces.[44] Since the release of the 2.6.26 kernel, some Broadcom chips have kernel support, but require external firmware to be built.
In 2003, theFree Software Foundation accused Broadcom of not complying with theGNU General Public License, as Broadcom distributed GPL code in a driver for its 802.11g router chipset without making its source code public. The chipset was later adopted byLinksys, which was later purchased byCisco. Cisco eventually published the source code for itsWRT54G wireless broadband router under the GPL license.[45][46]
In 2012, theLinux 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.[47] That October, Broadcom released parts of theRaspberry Piuserland under aBSD-style license. According to the Raspberry Pi Foundation, this made it "the first ARM-based multimedia SoC with fully functional, vendor-provided (as opposed to partial,reverse-engineered) fullyopen-source drivers", although due to substantial binary firmware code, which must be executing in parallel with the operating system, and which executes independently and prior to loading of the operating system, this claim has not been universally accepted.[48][49]
Broadcom provided a Linux driver for theirBroadcom Crystal HD, in addition to hiring Emma Anholt – a former Intel employee – to work on afree and open-source graphics device driver for their VideoCore IV.[when?][citation needed]

The charitableRaspberry Pi Foundation requested help from Broadcom for design and manufacture of the Raspberry Pi card, aDRM-free motherboard capable of interaction with external hardware.[citation needed] Broadcom Corporation organized the fabrication of the processor chip for the Raspberry Pi, with the last[clarification needed] before the company's acquisition in 2016 being the BCM2837 chip and the WiFi processor BCM43438, which was used by the Foundation.[citation needed]

Many Broadcom employees have gone on to take key positions in successful tech enterprises and starts ups, including:

Broadcom is known as afabless company. It outsources allsemiconductor manufacturing tofoundries, such asGlobalFoundries,Semiconductor Manufacturing International Corporation,Silterra,TSMC andUnited Microelectronics Corporation.
The company planned a custom-built headquarters campus just south of theOrange County Great Park inIrvine, California. It originally intended to occupy the entire campus, but after the Avago acquisition, it sold the site to FivePoint Holdings and then leased back only two of the four buildings. Broadcom was previously headquartered in the University Research Park on theUniversity of California, Irvine campus from 2007 on, and before that was headquartered near theIrvine Spectrum. The company has many other research and development sites includingSilicon Fen,Cambridge (UK),Bangalore andHyderabad in India,Richmond (near Vancouver) andMarkham (near Toronto) in Canada andSophia Antipolis in France.
Broadcom was known for its aggressive acquisition strategy that helped it achieve significant growth and market share, and with quickly entering new markets.[55][56][57][58]
In September 2011, Broadcom boughtNetLogic Microsystems for a deal of $3.7 billion in cash, excluding around $450 million of NetLogic employee shareholdings, which will transfer to Broadcom.[59]
| Date | Acquired company | Amount | Expertise |
|---|---|---|---|
| January 1999 | Maverick Networks[60] | $104M in Stock | Multi-layer switches for corporate networks |
| April 1999 | Epigram[61] | $316M in stock | Home networking using telephone wiring, WiFi |
| June 1999 | Armedia Inc.[62] | $67.2M in stock | Digital Video Decoders[63] |
| August 1999 | HotHaus Technologies[64] | $280M in stock | DSP software forVOIP |
| August 1999 | Altocom[65] | $170M in stock | Software modem software |
| January 2000 | BlueSteel Networks[66] | $123M in stock | Security processors |
| March 2000 | Digital Furnace Corp.[67] | $136M in stock | Data compression software |
| March 2000 | Stellar Semiconductor[68] | $162M in stock | 3D graphics processors |
| June 2000 | Pivotal Technologies[69] | $242M in stock | Digital video chips |
| July 2000 | Innovent Systems[70] | $440M in stock | Bluetooth radios |
| August 2000 | Puyallup Integrated Circuit Company | IC design and IC macro blocks | |
| July 2000 | Altima Communications[71] | $533M in stock | Networking chips |
| October 2000 | Newport Communications[72] | $1,320M in stock | 10Gbit Ethernet transceivers |
| October 2000 | Silicon Spice[73] | $1,250M in stock | DSP chips forVOIP |
| November 2000 | Element 14[74] | $641M in stock | DSL chipsets |
| November 2000 | SiByte, Inc. | $2,060M in stock[75][76] | Fabless producer of 64-bit MIPS networking processor[77] |
| December 2000 | Allayer Communications[78] | $276M in stock | Enterprise and optical networking chips |
| January 2001 | VisionTech, Ltd.[79] | $677M in stock | MPEG-2 compression/decompression of PVRs |
| January 2001 | ServerWorks Corp.[80] | $1,003M in stock | I/O controllers for servers and workstations |
| July 2001 | PortaTec Corporation[81] | Mobile devices | |
| July 2001 | Kimalink[81] | Wireless and mobile ICs | |
| May 2002 | Mobilink Telecom, Inc.[57] | $190M in stock | Baseband processors for cellphones |
| March 2003 | Gadzoox[82] | $5.8M in cash | Storage-area networks |
| January 2004 | RAIDCore, Inc.[83] | $16.5M in cash | RAID software |
| April 2004 | M-Stream Inc.[84] | $8.6M in cash and 27,000 shares of stock | Technology to improve wireless reception |
| April 2004 | Sand Video, Inc.[85] | $77.5M in stock and $7.4M in cash | Video compression technology |
| April 2004 | WIDCOMM, Inc.[86] | $49M in cash | Software for Bluetooth systems |
| April 2004 | Zyray Wireless, Inc.[87] | $98M in stock | Baseband processors for WCDMA |
| September 2004 | Alphamosaic, Ltd.[88] | $123M in stock | Video processors for mobile devices |
| February 2005 | Alliant Networks, Inc. | Cellular gateway products | |
| March 2005 | Zeevo, Inc.[89] | $29.4M in cash and $2.6M in stock | Bluetooth headset products |
| July 2005 | Siliquent Technologies, Inc.[90] | $76M in cash | 10Gbit Ethernet interface controllers |
| October 2005 | Athena Semiconductors, Inc.[91] | $21.6M in cash | Digital TV tuners and Wifi technology |
| January 2006 | Sandburst Corporation[92] | $75M in cash and $5M in stock | SOC chips for Ethernet packet switching |
| November 2006 | LVL7 Systems, Inc.[93] | $62M in cash | Networking software |
| May 2007 | Octalica, Inc.[94] | $31M in cash | Multimedia Over Coax technology |
| June 2007 | Global Locate, Inc.[95] | $146M in cash | GPS chips and software |
| March 2008 | Sunext Design, Inc.[96] | $48M in cash | Optical disk drive technologies |
| August 2008 | AMD (DTV Processor Division)[97] | $141.5M in cash | Xilleon DTV processor chips, software and TV tuners |
| December 2009 | Dune Networks[98] | $178M in cash | High speed network switches |
| February 2010 | Teknovus[99] | $123M in cash | Ethernet Passive Optical Network (EPON) chipsets and software |
| June 2010 | Innovision Research & Technology plc[100] | $47.5M in cash | Near field communication expertise and IP |
| October 2010 | Beceem Communications[101] | $316M in cash | 4G LTE/WiMax expertise |
| November 2010 | Gigle Networks[102] | $75M in cash | Multimedia home networking |
| April 2011 | Provigent Ltd.[103] | $313M in cash | Microwave Backhaul |
| May 2011 | SC Square Ltd.[104] | $41.9M in cash | Israel-based security software developer |
| September 2011 | NetLogic Microsystems[105] | $3,700M | Next-generation Internet networks |
| March 2012 | BroadLight[106] | $195M 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,[107] QAM modulation and wideband receivers. | |
| September 2013 | Renesas Mobile Corporation[108] | $164M in cash | Mobile chipset platforms (LTE-related assets) |
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 mathematicalsinc function.[citation needed]
In 2009, the company founded the Broadcom Foundation as a non-profit corporation with a $50M investment, at the direction ofHenry Samueli, the company's co-founder, and then-Broadcom Chief ExecutiveScott A. McGregor, who cited a history of science fair involvement as a factor for his own success.[109][110] McGregor was named the foundation's first president and chairman.[110][111]
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