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However, at present Intel is only fourth in the communications chip market, with a 5.7% share.
Strong smartphone sales drove revenue in the communications chip sector to $80 billion in 2010.
The company said demand for PC processors remained stable but the communications chip business was weak.
It also lowered its ratings on communications chip makers like Applied Micro Circuit, which fell 66 cents, to $18.28.
Qualcomm's advantage may lie in its ability to integrate an application processor with communications and graphics functions, and in its long history in the communications chip market.
Agere, a communications chip maker spun off this month from Lucent Technologies, agreed to provide chips, modules and cards to Proxim for the next three years.
Similar(26)
Atheros Communications, which makes wireless communications chips for Hewlett-Packard Co. computers, in December bought Intellon for $244 million in cash and stock, adding digital networking lines as it seeks to strengthen sales.
The company manufactures communications chips.
The unit makes communications chips and fiber optic components like lasers.
The move will allow Maxim to sell power-management and communications chips.
Infineon, a German semiconductor maker, supplies memory chips to the personal computer industry and communications chips to mobile phone makers.
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