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Broadcom’s finances affected by Huawei ban

Broadcom, the world’s largest chip design company, released its Q2 financial report for 2019’s fiscal year a few days ago, showing a $5.517 billion for the quarter, a 10% year-on-year increase and 4.7% decrease from the previous quarter. Net profits was at $691 million, an 81% year-on-year decrease. The US ban on Huawei contributed much to the decline.

Broadcom’s revenue forecast has also been lowered to $22.5 billion for FY2019, roughly an 8% decrease from the $24.5 billion forecast three months ago. Huawei is unable to purchase Broadcom chips because of the US ban, so the company has lost a major customer.

Huawei’s revenue exceeded $100 billion last year with suppliers worldwide. US companies make up ⅓ of 92 core suppliers, as well as being the third-largest chip buyer after Apple and Samsung. The ban has affected the semiconductor industry too, experiencing heavy losses in the New York Stock Exchange. Share prices for Broadcom dropped 5.57%, TI’sGerman instrument fell 3.5%, NVIDIA fell 2.4%, and Intel fell 1.1%. Non-US companies like TSMC ADR fell 4.1%, AUO dropped 1%, among others. | | personal loans with no checking account | | personal loans with no checking account | | personal loans with no checking account