Broadcom to buy LTE assets from Renesas Electronics

(Reuters) - Mobile chipmaker Broadcom said it is buying Japanese chipmaker Renesas Electronics' LTE-related assets for $164 million to speed up its launch of next-generation communications technology.

Broadcom's chips integrating Wi-Fi and Bluetooth technology are used in Apple's iPhone and other top-tier smartphones and tablets.

The company makes 3G baseband chips used in less expensive smartphones sold in Asia and other emerging markets, and, like Intel, Nvidia and other chipmakers, Broadcom has been rushing to develop and launch high-speed 4G baseband chips compatible with more advanced networks.

Broadcom said it expects the deal to speed up the launch of its first multimode, carrier-validated LTE, or Long Term Evolution, chip platform into early 2014.

"Broadcom is gaining a dual-core LTE (chip) that is ready for volume production and is carrier-validated by leading global operators in North America, Japan and Europe," the company said of the acquisition in a press release on Wednesday.

Qualcomm is currently the only chipmaker selling LTE chips for top-tier smartphones used on LTE networks in the United States.

Broadcom said it expects the cash transaction to be roughly neutral to non-GAAP earnings per share by the second half of 2014.

Separately, Broadcom tightened its revenue forecast for the September quarter, saying it now expects revenue between $2.075 billion and $2.175 billion, compared to a prior forecast of $2.05 billion and $2.20 billion.

(Reporting by Noel Randewich; Editing by Nick Zieminski)