How important is the acquisition of LVL7 for Broadcom? The acquisition is very important for us, considering that Broadcom and LVL7 have had a strategic relationship that was first visualized four years ago. Over the years, LVL7 has been able to establish its credentials with multiple Ethernet-based network switches OEMs and ODMs by offering a sound business proposition based on a 'production ready' model of its flagship Ethernet switching and routing networking solution-Fastpath. We see enormous potential in Fastpath for its network switch business, and believe that it can now offer higher value and enhanced feature-rich software to its portfolio of Ethernet switching silicon solutions.
After the acquisition of LVL7, how will you integrate the two companies having two different working cultures? Broadcom has had a very successful history of strategic acquisitions, and built highly mechanised and efficient acquisition processes. Due to the existing relationship with LVL7, the business and engineering integration process will be much quicker than most other acquisitions till date. On the human capital front, both Broadcom and LVL7 have very similar cultures in terms of objectives, management practices, and operational procedures. Here again, the integration process will be much quicker than other acquisitions. The common vein in the two companies has been that staff members work hard and posses the same intensity and passion for success and growth.
How significant will be the LVL7's Fastpath family of software enabling Broadcom in the expansion of its current place in the SMB segment? We see enormous potential in Fastpath for SMB segment, which is one of the fastest growing segments worldwide. We believe that Fastpath can unleash the full potential of Broadcom silicon for the SMB market place by having design teams of silicon and software work together. This will result in not only a higher feature-rich set, but also help in reducing time to market, thereby increasing competitiveness of our customers.
Over the years, Broadcom has had more than 30 strategic acquisitions globally. LVL7 being the latest, how important is India in the company's scheme of things? We are looking at the best and brightest talent available. The most important factor for us is not the location of a company, but what it has to offer. Some of the most talented engineers are Indians, be it in the US or Hyderabad. We find definitive synergy between our value-based strategy and the talent that is available in India. Therefore, India will continue to remain very important in Broadcom's growth plans for the future. In this context, the LVL7 acquisition is very important as it brings important software capabilities to our leading switching business.
Do you have any plans to outsource manufacturing of semiconductors to India? Broadcom will continue to be a fabless company, outsourcing silicon manufacturing to companies that have set highest standards for quality and reliability. Our style of functioning offers the highest value for money. This is also pushing manufacturers to keep pace with the times. Today, we are at 65 nanometre and driving further. We believe that the industry in general will be awaiting developments on the semiconductor manufacturing policy of the government of India, and the building up of support infrastructure for manufacturing in terms of talent, logistics, incentives, etc.
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