The strong sales and the stiff chip testing capacity will extend the 802.11 WLAN chip shortage trough the first quarter of 2004. This shortage began early this quarter, causing Taiwanese network equipment makers to be unable to meet the orders.
Rising shipments of notebooks with built-in 802.11g chips has led to increasing urgent orders at IC design houses, explained Frank Chen, Broadcom’s country manager for Taiwan. However, normal orders will not be affected by the shortage, he added. Chen also projected that tight testing capacity would be relieved after mid-January.
Chen added that the lawsuit between Taiwan Semiconductor Manufacturing Company (TSMC) and Semiconductor Manufacturing International Corporation (SMIC) would not affect Broadcom’s chip supply.
SMIC produces Broadcom’s 802.11g chips with 0.25-micron technology while TSMC produces Broadcom’s next-generation chips with more advanced processes, Chen said.