One of the largest manufacturers and suppliers of communication chips is Broadcom. Moreover, the company also supplies and manufactures some of the communication chips for Apple. Recently, according to some of the sources of the industry in Taiwan, rumors have spread that the company is looking to slowly put an end to their business which deal in Wi Fi chips. The main reason they are stating is that the company is in need of streamlining their product line as well as their work force.

Before the company actually took this decision, the company had taken over Avago Technologies. Many experts feel that both these changes show that the company has bigger plans for themselves. According to the reports, the company has not only acquired an asset, but with phasing out one of its businesses, it has the time as well as the manpower to put in extra resources towards the development and research work in the field of servers and fiber optics.

Compared to the other nosiness modules of the company, Broadcom actually has lower gross margins in the field of Wi Fi chips. According to various reliable sources, one of the main reasons behind the company’s decision to remove the Wi Fi chip business they head is the increase in competition and the ruthless price war growing in the communications and electronic sector or the world.

The reports further states that Broadcom has actually started off with the process and reduced their Wi Fi business man power to half. Many feel that this decision taken by Broadcom can create a problem for Apple, since the main suppliers for the Apple Wi Fi chipset was Broadcom. Some of the most used products such as iPhones, iPads and iWatches have Broadcom manufactured chips in them.