Broadcom Identifies $300M Cuts

Rick Merritt, EETimes
3/3/2016 07:15 PM EST

SAN JOSE, Calif. – Hock Tan has made a lot of progress re-defining Broadcom Corp. in just a month since he acquired it for $37 billion in the semiconductor industry’s biggest deal to date. But the chief executive of the former Avago is not ready to provide details about what the new company looks like yet.

At a high level, Tan organized what is now Broadcom Ltd. into about 24 profit/loss divisions, considered the new company’s core businesses. Each has its own set of market and technology goals and a general manager reporting to him. He estimated they will report consolidated revenues of $3.55 billion in the April quarter, slightly below Wall Street estimates of $3.57 billion.

The next quarter “will be the trough for rest of fiscal year,” Tan said, noting his eight-inch fab is already building RF parts for the next-generation Apple iPhone in which he expects to win as much as 20% more sockets.

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