Synaptics Speeds Up Edge AI Strategy with Broadcom Deal

Synaptics Incorporated (Nasdaq: SYNA) has accelerated its Edge AI strategy by signing a definitive licensing agreement with Broadcom Inc. (Nasdaq: AVGO), a move that is expected to significantly enhance its wireless product roadmap and expand its addressable market. The deal, announced on January 28, 2025, includes Wi-Fi 8, ultra-wideband (UWB), Wi-Fi 7, advanced Bluetooth, and next-generation GPS/GNSS products and technology for IoT and Android ecosystem.



The strategic benefits of this agreement are multifold. First, it solidifies Synaptics' leadership position in end-to-end AI Internet of Things (IoT) connectivity and expands its ability to service the Android ecosystem. Second, it strengthens Synaptics' Veros™ wireless product roadmap for the next 5+ years by adding Wi-Fi 8 combo, UWB, GPS/GNSS, and Wi-Fi 7 combo products. Third, it increases Synaptics' addressable market by expanding its serviceable wireless market to include augmented and virtual reality (AR/VR) platforms, Android smartphones, and consumer audio. Additionally, the deal is expected to be immediately accretive to non-GAAP EPS and add $40+ million in annualized sales.



Key technology focus and growth areas for Synaptics include:

1. Wi-Fi 8: Reinforces and builds on Synaptics' field-proven Wi-Fi/Bluetooth combo solutions for the IoT, including Wi-Fi 7. The rapid incorporation of Wi-Fi 8 gives Synaptics a first-mover advantage in new markets such as automotive and positions it among the leaders deploying this technology for AR/VR and Android smartphones.
2. UWB: Allows Synaptics to participate in a growing market for precise location tracking and complements its market-leading Wi-Fi combo connectivity.
3. GPS/GNSS: Synaptics is already among the leaders in GPS/GNSS for the IoT. Next-generation devices will build upon this success through lower power, greater accuracy, reduced system-level cost and complexity, and more functionality, allowing Synaptics to further penetrate markets such as wearables, navigation devices, and asset trackers.

In conclusion, Synaptics' licensing agreement with Broadcom is a strategic move that accelerates its Edge AI strategy, solidifies its wireless product roadmap, and expands its addressable market. By integrating Broadcom's technology, Synaptics is well-positioned to deliver on the potential of IoT connectivity and drive long-term growth and financial performance.