Huawei’s ban affected Broadcom’s finances

A few days ago, the world’s largest chip design company, Broadcom, released its Q2 financial report for the fiscal year 2019. The revenue for the quarter was $5.517 billion, a year-on-year increase of 10 %, and a decrease of 4.7% from the previous quarter. The net profit for the quarter was $691 million, an 81% decrease year-on-year.  Huawei’s ban by the US played a major role in the decline. 

Huawei's ban affected Broadcom's finances

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Not only that, but Broadcom also lowered its revenue forecast for FY 2019 to $22.5 billion. This revenue is expected to decrease by 8% compared with the $24.5 billion estimates three months ago. The main reason is that Huawei, a major customer of Broadcom, no longer purchase Broadcom chips due to the US ban.

Huawei’s revenue last year exceeded $100 billion with suppliers from all over the world. Among its 92 core suppliers, US companies account for about 1/3. Huawei is now the world’s third-largest chip buyer after Apple and Samsung. Huawei’s ban has seriously affected the global semiconductor industry. Yesterday, the semiconductor industry suffered heavy losses in the New York Stock Exchange. Broadcom’s share price plummeted 5.57 %, TI’sGerman instrument fell 3.5 %, AMD also fell 3.3 %, NVIDIA fell 2.4 %, and Intel fell 1.1 %. Not only the US companies, but TSMC ADR also plunged 4.1 %, AUO dropped 1 %, and the first-largest packaging and testing plant fell 1.6 %.


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1 Comment

  1. Rabbitkun
    June 17, 2019

    part of Trump’s make murica great campaign