NEW YORK: Broadcom Inc said demand for microchips had hit a bottom and would remain at current levels, a sign that an industry downturn may linger, and added that there was no clear indication as to when the recovery would take place.
The chip industry has been in a slowdown with research firm Gartner forecasting a 9.6 per cent drop in global semiconductor revenue to $429 billion in 2019. US-China trade tensions, including tariffs on some products and the restrictions on sales to Huawei, have been pressuring chipmakers. “...There is not much clarity or visibility yet, or certainty that any sharp recovery is around the cornre,” Chief Executive Officer Hock Tan said on a post-earnings call.
He said the company is managing its chip business with an expectation that it will continue to operate in a “very low growth, uncertain macro environment” for the foreseeable future.
Revenue from the company’s semiconductor solutions segment fell about 5 per cent to $4.35 billion from a year ago. — Reuters
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