The history of Broadcom is a masterclass in aggressive corporate consolidation. The entity we know today as Broadcom Inc. is actually the result of Avago Technologies acquiring the “old” Broadcom in 2016 and adopting its more famous name.
Here is the history of Broadcom broken down into five key stages:
1. The Roots: HP Semiconductor Division (1961-1999)
The company’s DNA traces back to HP Associates, founded in 1961. This division was created to develop high-end semiconductor components for Hewlett-Packard’s internal testing equipment and early computers.
- Focus: Development of LEDs, radio frequency (RF) components, and fiber optics.
- Spin-off: In 1999, HP spun off its testing and semiconductor businesses to form Agilent Technologies.
Revenue Level: Approximately $1B to $2B annually (as a division).
Core Products:
- Optical Sensors: Developed the world’s first optical mouse sensor technology.
- RF Components: Early radio frequency parts used in cellular infrastructure and test equipment.
- LED & Fiber Optics: Industrial lighting solutions and fiber optic connectors for mainframe interconnects.
2. The Avago Era: Private Equity and Hock Tan (2005-2015)
This stage marks the beginning of the current management style led by Hock Tan.
- Private Equity Buyout: In 2005, KKR and Silver Lake acquired Agilent’s Semiconductor Products Group for 2.66 billion dollars, renaming it Avago Technologies.
- Strategic Shift: Under CEO Hock Tan (appointed in 2006), the company pivoted toward a “buy and integrate” strategy, focusing on high-margin, niche market leaders.
- Expansion: Avago went public in 2009 (NASDAQ: AVGO) and grew through acquisitions like LSI Corporation in 2014.
Revenue Level: Grew from $1.5B (2005) to $6.8B (2015).
Core Products:
- FBAR Filters: Film Bulk Acoustic Resonator technology, essential for filtering interference in 3G/4G smartphones (a key component in early iPhones).
- Storage Controllers: SAS/SATA RAID controllers for enterprise servers.
- PCI Express Switches: Critical chips for managing data traffic between CPUs and peripherals in high-performance computing.
3. The Merger with “Old” Broadcom (1991-2016)
While Avago was growing, the original Broadcom Corporation was becoming a giant in the communications world.
- The Rival: Founded in 1991 by Henry Samueli and Henry Nicholas, Broadcom Corp. dominated the market for WiFi, Bluetooth, and cable modem chips.
- The “Minnow Swallows the Whale”: In 2016, the smaller Avago acquired the larger Broadcom for 37 billion dollars.
- Rebranding: The merged company was named Broadcom Limited (later Broadcom Inc.), keeping the AVGO ticker but using the Broadcom brand name.
Revenue Level: Jumped to $13.2B (2016) and reached $17.6B (2017).
Core Products:
- StrataXGS (Tomahawk/Jericho): High-end Ethernet switching silicon that powers over 70% of modern data center networks.
- Broadband SoCs: Chips for cable modems, DSL, and set-top boxes used by global ISPs.
- Wireless Connectivity: Integrated Wi-Fi and Bluetooth combos for laptops and premium mobile devices.
4. Expansion into Software (2018-2022)
After the U.S. government blocked Broadcom’s 117 billion dollar hostile takeover bid for Qualcomm in 2018 due to national security concerns, the company shifted its focus toward enterprise software.
- Diversification: To reduce reliance on the cyclical semiconductor market, Broadcom began buying massive software firms.
- Major Deals: They acquired CA Technologies for 18.9 billion dollars (2018) and Symantec’s Enterprise Security business for 10.7 billion dollars (2019).
Revenue Level: Crossed the $20B mark, reaching $33.2B in 2022.
Core Products:
- Mainframe Software: Mission-critical management tools for banks and insurance companies (acquired from CA).
- Endpoint Security: Enterprise-grade cybersecurity suites (acquired from Symantec).
- Early Custom ASICs: Specialized silicon designed for cloud providers, including Google’s TPU (Tensor Processing Unit) for AI workloads.
5. The AI and Cloud Powerhouse (2023-Present)
Today, Broadcom has evolved into a diversified technology conglomerate deeply embedded in the AI revolution.
- The VMware Deal: In late 2023, Broadcom completed its 61 billion dollar acquisition of VMware, its largest deal ever, aiming to dominate the hybrid cloud infrastructure market.
- AI Growth: Broadcom has become the primary partner for Custom AI accelerators (ASICs), most notably producing the TPU for Google, and dominates the high-end networking switch market (Tomahawk series) essential for AI data centers.
Revenue Level: Reached $51.6B in 2024, projected to hit $64.2B in 2025.
Core Products:
- Tomahawk 5/6 Switches: The only chips currently capable of handling the massive bandwidth (800G/1.6T) required for AI GPU clusters.
- AI Custom Accelerators (XPUs): Custom-designed AI chips for hyperscalers like Google, Meta, and ByteDance.
- VMware Cloud Foundation (VCF): A full-stack software platform that virtualizes compute, storage, and networking, now sold primarily as a subscription service.
Broadcom History Timeline Summary
| Year | Milestone | Key Focus |
| 1961-1999 | HP Semiconductor Div. | Founding technology and RF components. |
| 2005 | Avago Technologies | Private equity spin-off and IPO. |
| 2016 | Avago acquires Broadcom | Consolidation of the communications chip market. |
| 2018-2019 | Software Expansion | Acquisition of CA and Symantec. |
| 2023 | VMware Acquisition | Pivot to hybrid cloud and enterprise software. |