Avago, Broadcom deal could put pressure on Qualcomm: analysis

PRESSURE BUILDING UP: A Broadcom/Avago tie-up potentially gives handset makers another viable supplier, giving them more leverage and putting even more pressure on Qualcomm, said IDC analyst Mario Morales.

Avago Technologies Ltd's US$37bil (RM135.56bil) deal to buy chipmaker Broadcom Corp creates new competitive challenges for Qualcomm and may force the world's largest mobile chip maker to radically rethink its own strategy. 

Qualcomm Inc, which has dominated the market for connectivity chips on smartphones, has been looking to extend its reach into data centres and network infrastructure, but may find its way blocked by an enlarged competitor combining Avago's strength in storage and Broadcom's power in networking.