Ji Zhenyu November 14 reported in Silicon Valley
Just one day after Qualcomm received a $ 100 billion bid for Broadcom, the chip giant won a landmark award from the Institute of Electrical and Electronics Engineers (IEEE) in recognition of its groundbreaking contribution to CDMA wireless communications 28 years ago .
The earliest winners of this award date back to the famous Franklin Kite Experiment in 1751, the invention of the Edison bulb, the establishment of the Bell Telephone Lab, and Tesla's outstanding contributions to electromagnetic induction research. Each one It is a major breakthrough of epoch-making significance in the history of human science and technology development.
With this award, Qualcomm CTO James Thompson said with great emotion that this is a great achievement that Qualcomm has made in electronics and electronics to create inventions that have even come to the fore possible with such great people as Edison and Bell.
With solid and steady technological innovation over the years, Qualcomm has achieved substantial commercial returns after entering the mobile era. Qualcomm is dedicated to the spirit of innovation, acquired Broadcom also spoke highly of. In the offer statement, Hock Tan, Broadcom CEO, said that we are respectful of QUALCOMM's founders and their commitment to the development of innovative technologies and said that if the acquisition is completed, it will inherit Qualcomm's legacy of technological innovation and invention .
However, despite the co-location of the chip industry, Qualcomm and Broadcom are reflected in exactly the opposite of the two styles. Today's Broadcom more like a monster behemoth, to promote its rapid growth in the industry as a giant in a short time the power is not technological innovation, but capital operation.
In the eyes of industry, today Broadcom is more focused on the immediate short-term interests, through the leveraged buyout and immediate research and development, to achieve each quarter's performance indicators.
Just days before Broadcom announced its acquisition of Qualcomm, Broadcom CEO Hock Tan and US President Trump embarked on a prominent page on various media political and science news where he announced in a high profile that Broadcom The headquarters moved from Singapore to the United States to cater to Trump's policy of rejuvenating U.S. businesses and paving the way for the antitrust scrutiny the next acquisition faces and continuing its highly purposive style of doing things.
The timing of the offer to buy Qualcomm, but also quite a bit robbery means that Qualcomm is facing multiple litigation, including the most violent from the major customers Apple, a direct result of its revenue, profits both decline, Qualcomm shares have fallen 20 this year %.
So Broadcom CEO Hock Tan's approach is entirely a savvy investment banker, rather than a traditional chip company's technology leader, his background at Harvard Business School, completely overshadowed the previous at the Massachusetts Institute of Technology Engineering background. In the opinion of a person in the semiconductor industry, he is completely a "man on Wall Street".
With a dazzling array of acquisitions, Broadcom's annual revenue from less than 2.5 billion US dollars in 2012 to Avnet After the completion of the acquisition of Broadcom transformed into a new Broadcom, a nearly six-fold increase in 2016 full year Revenues have surpassed 13 billion U.S. dollars.
On the other hand, Qualcomm achieved a record annual revenue of $ 26.5 billion in 2014, declining year by year and Qualcomm in the mobile Internet era. However, as the market is becoming saturated, Qualcomm still fails to find the next performance growth point, Networking, artificial intelligence and other concepts, Qualcomm failed to take the initiative, despite the advantages of 5G communication technology, but the 5G era is far from coming.
For many in the semiconductor industry, Broadcom's acquisition of Qualcomm became a familiar scene. Just over two years ago, Avago, now chief executive of Broadcom, led a $ 37 billion acquisition of Broadcom, the latter also Trapped in the changes in the industry, while weak technical innovation, had to embark on the sale of the road.
However, this may be the real situation that the industry has to face now. The pressure of continuous competition accumulates. For a time, the rapidly growing enterprises are forced to confront the reality that the industry is becoming mature.
A semiconductor engineer at Huawei exclaimed that capital is like playing games, and technology is struggling to survive in this narrow gap.
But advances in technology may further fuel surges in capital, independent chip analyst Patrick Moorhead explained that the wave of mergers in the chip industry is driven to some extent by technological advances that make more Computing and communications capabilities can be integrated into a "single-chip system". "The game has become either integrated or integrated," he added.