Broadcom’s $2B warning rattles global chip sector

LONDON/BENGALURU (Reuters) – Broadcom Inc sent a shockwave through the global chipmaking industry on Friday with its forecast that U.S.-China trade tensions and the ban on doing business with Huawei Technologies would knock $2 billion off the company’s sales this year. “We believe Broadcom’s 2H19 outlook is not only impacted by the direct Huawei export ban, but also includes the indirect impact from the Huawei export ban to other customers as well as the possible industry-wide impact of the possible additional import tariffs,” Summit Insights Group analyst Kinngai Chan said. “I think you have seen all the companies (Qorvo, Skyworks, Maxlinear, Cree, Inphi, Lumentum, NeoPhotonics) which pre-announced negative for about half their quarter’s impact due to this Huawei export ban,” Chan said.

Source: www.reuters.com