Broadcom has signed a definitive agreement to acquire Athena Semiconductors

October 6, 2005

2 Min Read

IRVINE, Calif., and FREMONT, Calif. -- Broadcom Corporation (NASDAQ:BRCM), a global leader in wired and wireless broadband communications semiconductors, today announced that it has signed a definitive agreement to acquire Athena Semiconductors, Inc. Athena is a fabless semiconductor company that specializes in the design and development of mobile digital television tuner and low-power Wi-Fi(R) technology, two markets of interest to Broadcom. Industry analysts expect the market for low-power Wi-Fi chips to reach more than 104 million units per year by 2008, a compound annual growth rate (CAGR) of 121%(1), while mobile digital TV tuner chips should reach 81 million units by 2010(2), a CAGR of 205% over 5 years.

Mobile digital television (including DVB-H) and low power Wi-Fi technologies continue to be adopted by handset providers at an accelerating rate. Both technologies complement Broadcom's existing mobile and wireless product portfolio, which includes mobile multimedia (including audio, video and 3G graphics), Wi-Fi, Bluetooth(R), VoIP, and 2G/3G cellular baseband solutions. DVB-H allows mobile handset users to view real time transmissions of news, weather, sports, and other video content. DVB-H services are in field trials around the world today.

Historically, Wi-Fi chipsets have served the PC notebook and home networking market segments, neither of which is particularly power sensitive. In the future, Broadcom expects a new generation of Wi-Fi technology to be included in a range of mobile devices, including cellular handsets, personal media players and handheld video games, for which prolonged battery life is a primary design consideration. Embedded Wi-Fi technology will enable these products with faster Internet services and real time peer-to-peer connectivity. Low-power Wi-Fi devices, when combined with VoIP technology, will also provide a "voice over Wi-Fi" solution. This will enable both a new class of smart cordless phones (Wi-Fi phones) and "One-Phones," which combine the functionality of a Wi-Fi phone and a cellular phone into a single handset.

"Mobile television is a very exciting technology, and we expect that by combining Athena's DVB-H tuner with Broadcom's mobile multimedia technology for H.264 decoding, we will create the core of an industry-leading mobile digital TV chipset," said Robert Rango, Senior Vice President & General Manager of Broadcom 's Mobile & Wireless Group. "In addition, Athena brings low-power Wi-Fi design capabilities and a seasoned engineering team with a proven track record whose expertise complements Broadcom's existing engineering resources."

Broadcom Corp.

Athena Semiconductors Inc.

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