Broadcom buys Renesas' 4G chip division -

Broadcom has announced it will buy the LTE chip segment of Japanese chip maker Renesas.

Although Broadcom has been competing in 4G, rivals such as Qualcomm have been speeding ahead, at least in the consumer space. Renesas, then, seems like a reasonable buy - as it announced it would give up in the 4G space earlier this year, focusing on other segments.

Broadcom shares rose on the news, while the company adjusted its quarterly earning expectations upwards from $2.075 billion to $2.175 billion.

Bob Rango, Broadcom GM in mobile and wireless, announced Renesas chip designers working in Finland, the UK, and India will become Broadcom employees with the buy, but other than that, details are a little sketchy, according to AllThingsD.

Rango pointed out that the team will be made up of ex Nokia folk who had a hand in the earlier 4G wireless standards - and said their experience will be useful.

Broadcom reckons the deal will take a decent chunk out of its fiscal 2014 earnings but ultimately the buy will be useful.

Broadcom boasted earlier this year that it expected the LTE group to generate revenue in 2014. CEO Scott McGregor said at the time that it is working on a "very strong" LTE product.

Right now, Qualcomm is shipping most LTE chips, grabbing 86 percent share over 2012.