Broadcom to buy Brocade for $5.9B as it looks to IoT era

The Internet of Things is changing our homes forever -- as well as the chipmaking industry.

Daniel Van Boom
Daniel Van Boom Senior Writer
Daniel Van Boom is an award-winning Senior Writer based in Sydney, Australia. Daniel Van Boom covers cryptocurrency, NFTs, culture and global issues. When not writing, Daniel Van Boom practices Brazilian Jiu-Jitsu, reads as much as he can, and speaks about himself in the third person.
Expertise Cryptocurrency, Culture, International News
The new BCM60500 HomePlug AV2 SoCs from Broadcom.
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The new BCM60500 HomePlug AV2 SoCs from Broadcom.

Broadcom's chipmaking empire is about to grow even broader, with the company stating Wednesday it will be buying network gear maker Brocade for $5.9 billion.

Brocade specialises in data storage and networking , while Broadcom provides connectivity components, like Wi-Fi chips, to companies like Apple , HTC and LG. The move comes at a time where data centres are increasingly important, thanks to the advent of the Internet of Things (IoT).

IoT technology is responsible for connecting regular old objects, like lights, fridges and dishwashers, to the internet. As more appliances become smart, and autonomous cars drive in our near future, greater data storage is needed.

There have been some big moves made in the chipset industry. Just last year, Broadcom merged with fellow chipmaker Avago in a $37 billion deal, Earlier this year, Broadcom acquired Ruckus Wireless for $1.2 billion.