<<The action against Qualcomm comes at a time when Broadcom is planning to start competing directly with the San Diego wireless giant in making "baseband" chips, which are the brains of cell phones.
"We are going into the cell-phone space," Rosmann said. "I know that some of the chips, the wireless communications chips, that we make go into cell phones now. But I also think we're moving into the cell-phone space on the baseband side."
Albert Lin, an analyst for American Technology Research, said Broadcom's tactic of suing Qualcomm brings attention to its new venture making chips that power cell phones.
He said a baseband chip sells for $8 to $20, while the chips Broadband has sold in the past to cell-phone makers are priced at about $2 each.
"Baseband chips are much more interesting as a market because they command so much money," Lin said.>>
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