Broadcom and Inari- What Next?
On 19th of December 2019, Broadcom comes out the news that might sell their RF business. One of their RF supplier Inari affected by this news. Thanks for the price crashed, this has created another opportunity for value investing. The company stock price is selling down like no tomorrow especially those fund house and again thanks to those negative mindsets have been created.
One Important News that Investors Missed On
However, look at corporate action after news on 14th of January 2020, what move Broadcom have done? Broadcom is expanding its semiconductor business! Cadence and Broadcom to include 5nm using Cadence’s digital implementation solutions. This for the creation of semiconductor solutions targeting next-generation networking, broadband, enterprise storage, wireless and industrial applications.
Source:
https://www.businesswire.com/news/home/20200114005087/en/Cadence-Expands-Collaboration-Broadcom-5nm-7nm-Designs
What is so powerful of 5nm and 7nm technology?
With these Cadence solutions in place, Broadcom can further augment engineering productivity and improve silicon performance and power.
"As a global infrastructure technology leader, we’re committed to delivering innovative products that enable our customers to excel in their respective markets," said Yuan Xing Lee, vice president and head, Central Engineering at Broadcom Inc. "With Cadence as a key silicon design partner, we’re able to achieve our power and performance goals and provide our customers with the highest quality solutions that they’ve come to expect from us."
Source:
https://finance.yahoo.com/news/cadence-expands-collaboration-broadcom-5nm-154500560.html
Broadcom growing their business further based on the latest collaboration with Cadence. Why do they want to sell RF business where 5G can contribute them with a good profit? Obviously, the tariff will be one of the issues.
Are Broadcom wants to sell their RF business? The news might due to trade war previously. Things changed after phase one trade deal.
Inari is expanding its business together with global demand. The new factory already in operation. Investing based on industry trend demands so that you won’t easily get burned without investigating. Inari Amertron, one of the top Malaysian semiconductor cmopany which provide and involved in the OSAT & electronics manufacturing services (EMS) industries. Chart will continue to be bullish!
https://klse.i3investor.com/blogs/Inari5G/2020-01-21-story-h1482872686.jsp
