Qualcomm bags Wi-Fi/home networking chip house Atheros

Mobile chip giant and patent maven Qualcomm has agreed to acquire fellow semiconductor firm and Wi-Fi innovator Atheros Communications for about $3.1 billion in cash, the companies announced Wednesday. News of the deal comes as many major chip companies gather at the 2011 Consumer Electronics Show in Las Vegas to promote their latest components.

The deal, expected to close during the first half of this year, also brings Qualcomm, the foremost wireless chip house, new expertise in home networking technologies, including Wi-Fi, HomePlug powerline and passive optical networking fiber-to-the-home. Atheros primarily has been known for past Wi-Fi innovations, but within the last two years also has acquired its way into other segments by buying companies like Intellon and Opulan.

Buying Atheros also could be read as Qualcomm re-focusing on matters closer to its traditional businesses after a failed effort to operate the FLO TV network. Qualcomm recently sold the FLO spectrum to AT&T for $1.9 billion.

Long-time Atheros president and CEO Craig Barratt is expected to join Qualcomm as president of Qualcomm Networking & Connectivity after the deal closes.

In other chip-related news this week, Broadcom announced at CES that it is now a sponsor member of the HomePlug Powerline Alliance, and will have a company representative serve on the group’s board. Broadcom acquired powerline firm Gigle Networks last year.

Also at CES, Wi-Fi chipmaker Celeno Communications, which has been busy in the video-over-Wi-Fi segment, announced that set-top box and residential gateway manufacturer Technicolor is set to use Celeno’s dual concurrent band video-grade Wi-Fi solution in its products. Celeno’s technology also was chosen by Zyxel to be used in the company’s new 5-GHz Wireless N Media Streaming Box.