Hopes of a semiconductor market rebound in the second half of the year seem all but gone after Broadcom slashed its guidance. The fabless expects semiconductor revenue to fall about 10 percent for the full year, with CEO Hock Tan citing a “very, very sharp and rapid contraction of supply chain and orders out there”.
At the start of the year, Broadcom expected the market to recover, as did many other semiconductor companies. However, the US-China trade conflict is putting a spoke in the wheels. Tan: “With respect to semiconductors, it is clear that the US-China trade conflict, including the Huawei export ban, is creating economic and political uncertainty and reducing visibility for our global OEM customers.”
Broadcom is the first major semiconductor company to present half-year results. Its fiscal second quarter covers February through May.