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Fabless semiconductor company Broadcom is looking to phase-out its Wi-Fi chip-making business, according to industry sources who spoke with Taiwanese trade publication DigiTimes. Broadcom is currently Apple’s top supplier of Wi-Fi chips used in Macs, iPhones, iPads and iPods so it looks like theĀ Cupertino firm might be forced toĀ find a new supplier soon.

Broadcom designs its own products but contracts out actual siliconĀ production to Taiwan Semiconductor Manufacturing Company Limited (TSMC), which also builds Apple-designed application processors for iOS devices.

Broadcom is said to be scaling back production of Wi-Fi chips as a result of workforce and product streamlining following its acquisition by Arago Technologies.

ā€œBroadcom has moved to significantly reduce resources allocated to its Wi-Fi chip business, which yields relatively low gross margins compared to other product lines due to fierce price competition in the market for mass-market applications such as notebooks, tablets, TVs and smartphones,ā€ reads the report.

Though the firm has already halved the workforce at its Taipei plant, MediaTek, Realtek Semiconductor and RDA Microelectronics have already received a pull-in of short lead-time orders from Broadcom’s customers in the Wi-Fi chip sector.

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Source: DigiTimes