Intel is buying itself a position in the fixed broadband CPE and smart home networking chip market with the acquisition of privately held German system-on-chip (SoC) specialist Lantiq for an undisclosed sum.
Lantiq Semiconductor sells a range of SoC products for customer premises equipment (CPE) and broadband access network equipment (central office, cabinets, distribution points) to equipment vendors that cover the full range of fixed (and many wireless) technologies, including DSL (ADSL, VDSL, vectoring, G.fast), FTTx (GPON), WiFi and even LTE (for CPE products). It employs about 800 people and its annual revenues are believed to be around $400 million, though the company declined to comment on its financials.
Intel Corp. (Nasdaq: INTC) says the move will extend its existing cable home gateway business into the "telecom residential gateway and access network markets," and enable it to develop Internet of Things (IoT) smart routers. (See Intel to Acquire Lantiq.)
"By 2018, we expect more than 800 million broadband connected households worldwide," said Kirk Skaugen, senior VP and general manager of Intel's Client Computing Group, in the company's official announcement. "The combination of our cable gateway business with Lantiq's technology and talent can allow global service providers to introduce new home computing experiences and enable consumers to take advantage of a more smart and connected home."
Lantiq, which competes with the likes of Broadcom Corp. (Nasdaq: BRCM) and Ikanos Communications Inc. (Nasdaq: IKAN), has been one of the leading players in the development of fixed access network components in recent years and has been aggressively targeting the increasingly important market for vectoring and G.fast chipsets that can boost the broadband speeds of copper lines running into homes and businesses. (See G.fast G.ets G.reen Light, G.fast Is Here: Lantiq & Sckipio CEOs In Conversation, Lantiq Intros G.fast Residential Gateway Reference Design, Lantiq, Keymile Tout Major Vectoring Deployment, Lantiq Pushes 200M VDSL and Lantiq Intros New GPON SoC Solution.)
It has also found success at Deutsche Telekom AG (NYSE: DT) with its hybrid fixed/mobile "DSLTE" home gateway solution that combines VDSL and LTE connectivity.
The integration of Lantiq into Intel's Client Computing Group will create an even more formidable smart home networking rival for Broadcom as components vendors battle to develop the connected devices that will manage all manner of home networking connectivity and applications and offer a secure link to the Internet.
The company name Lantiq is relatively new but the company has a rich history: It was formed in 2009 when Infineon sold its wireline communications unit to Golden Gate Capital for €250 million ($283 million). (See Infineon Sells Fixed Biz.)
The new deal isn't Intel's only link to Infineon's legacy, as it acquired Infineon's wireless chip business for $1.4 billion in 2010. (See Intel Looks to Infineon for the Full SOC.)
— Ray Le Maistre, , Editor-in-Chief, Light Reading