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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.

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.