Irvine chipmaker Broadcom Corp. said Monday it bought Sunnyvale-based Sunext Design Inc., a maker of chips for high-definition video players, for up to $48 million.
The cash deal, which includes licensing rights for certain Sunext chips, closed on Friday.
Broadcom is set to pay up to $48 million if Sunext meets certain sales goals.
The buy is set to give Broadcom a stronger market share foothold for chips that go into Blu-ray disc players, the company said.
“Sunext’s technology and strong engineering team will enable Broadcom to integrate optical reader/writer capability into our industry leading Blu-ray Disc silicon solutions,” said Dan Marotta, general manager of Broadcom’s broadband communications group.
Sunext currently makes chips that go into Broadcom’s hybrid video player, which can play DVDs in Blu-ray and onetime rival HD DVD format.
The hybrid player, which is made by South Korea’s LG Electronics Inc., has been on the market since 2006.
Last month, Japan’s Toshiba Corp. said it would no longer develop or market HD DVD players and recorders, a move that tipped the industry in favor of Blu-ray.
