Broadcom's $2 billion warning rattles global chip sector

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Broadcom's $2 billion warning rattles global chip sector
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Broadcom Inc sent a shockwave through the global chipmaking industry on Friday w...

LONDON/BENGALURU - 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.

U.S. chipmakers Qualcomm, Applied Materials Inc, Intel Corp, Advanced Micro Devices Inc and Xilinx Inc were all down between 1.5% and 3%. “We’re talking about uncertainty in our marketplace, uncertainty because of the - of demand in the form of order reduction as the supply chain out there constricts - compress, so to speak,” Tan said.

Broadcom, known for communications chips that power Wi-Fi, Bluetooth and GPS connectivity in smartphones, is also a major supplier to Apple Inc and shares of the iPhone maker were down 1%.

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