Renesas, the parent company of Renesas Mobile, today announced that they would be selling off their Renesas Mobile division to Broadcom for the sum of $164 million. This comes after Renesas made the announcement that they would no longer be operating Renesas Mobile and their 4G technologies as they could not profitably operate the division that they had purchased from Nokia back in 2010 for approximately $200 million. In all honesty, I don’t think Nokia should have ever sold that division, but it is clear that Renesas was struggling to make the division profitable and decided to give up.
This was eventually halted by Broadcom’s own interest in the Renesas Mobile division which holds countless 4G LTE patents and technologies. Broadcom themselves already have some of their own modem technologies, including some 4G LTE technologies, but it appears that they were not entirely happy with their own IP and decided to go after Renesas Mobile. This news also deflates the rumor that we had just published a day ago that Samsung was interested in purchasing Renesas Mobile from the parent company, which would have also made sense.
This acquisition will certainly strengthen Broadcom’s 4G LTE portfolio at a relatively inexpensive cost, while simultaneously making them a much more serious playing in the 4G baseband market, which has effectively been Qualcomm’s for the taking. If companies like Intel, Broadcom and Nvidia begin to challenge Qualcomm on 4G LTE modems, we could start to see some serious price competition, which could drive down the price of 4G LTE connectivity to the point of ubiquity.
We’re glad to finally hear that there is a resolution to the Renesas Mobile theatrics and that hopefully the people working in those divisions will get to keep their jobs and move forward with developing the next 4G and beyond technologies.