In the war for providing better smartphone technology Broadcom just tried to outdo Qualcomm which is the dominant player in this market. Broadcom has made it known that it is prepping a modem that will support extremely fast data speed called Long Term Evolution or LTE. The sampling of the chip named as the BCM21892 is in progress and the production of this chip will begin next year. According to the company sources, this chip occupies much less space – a difference of 35% – compared to earlier chips.

Due to its small size this chip is estimated to be more energy saving and the production will also be cheaper. As a result of this announcement the Broadcom share saw an increase of 0.8% in New York. This increase in the price of Broadcom shares shows that investors have been impressed by the news of the new chip.

The main war between Broadcom and Qualcomm is over three main components used in Smartphones viz. the modem, the processor and the connectivity combo chip. Many companies including these two are trying to combine the functionalities of the three components onto one single chip.

Broadcom is the leader in the market for manufacturing combo chips, with the help of which Smartphones can make use of WiFi and Bluetooth According to some analysts Broadcom owns 90% of the share of the market for combo chips meant for Smartphones. On the other hand its share in the modems market is only 4-5%. Qualcomm is also the leader in the market for LTE.

Qualcomm manufactured 86% of the LTE capable chips that were supplied in the market last year. Other processor manufacturing companies do not offer processors having LTE integration. However, Broadcom is aiming at entering into that arena. Till the time that Broadcom is able to do this, it hopes that because their chip has extra features it will be able to beat the processor manufactured by Qualcomm.