Shulou(Shulou.com)11/24 Report--

Beijing time on the afternoon of February 3, it is reported that Broadcom CEO Chen Fuyang (Hock Tan) said in an interview with the media a few days ago that after buying VMware for $69 billion, Broadcom will continue to seek more mergers and acquisitions, including the acquisition of semiconductor companies.

Through a series of bold mergers and acquisitions, Chen Fuyang has turned Broadcom into a $250 billion technology giant. Today, although Chen Fuyang is 71 years old, he will continue to serve as Broadcom CEO for five years. He said in an interview that Broadcom would still consider buying semiconductor companies, although the hostile $142 billion takeover of Qualcomm in 2018 was blocked by the then US government.

Last May, Broadcom announced that it would buy cloud computing company VMware for about $69 billion. It is one of the largest technology deals in history and will make Broadcom a strong competitor in software. The deal is still under scrutiny by regulators in the US, UK and Europe.

Mr Chen said acquisitions remained a key part of Broadcom's strategy in spite of greater scrutiny of large technology mergers and acquisitions. Broadcom maintains a "select" list of "potential acquisition targets", he said. On this list, some are companies in the field of semiconductors, while others are in the field of software.

No matter what Broadcom's next big move is, Chen Fuyang plans to continue to lead the company, even though he is past the retirement age of most executives. "I just signed another five-year contract," he said. I am very happy with my present job. "

Before acquiring VMware, Broadcom had made several large mergers and acquisitions, including the acquisition of the enterprise security business of semiconductor company LSI, network technology maker Brocade, large software company CA and network security company Symantec.

In retrospect, Chen Fuyang said his biggest mistake in the Qualcomm deal was to launch a "hostile merger". "the only real way to make acquisitions is to make acquisitions on a friendly and fair basis," he said. "

While trying to appease regulators, Chen Fuyang faces another threat: Apple may replace Broadcom wireless chips used in its iPhone with its own chips. Apple is Broadcom's biggest customer, contributing about 20% of Broadcom's sales last year.

Chen Fuyang said that despite the great success of Apple's other chip designs, Broadcom is confident of surpassing Apple in engineering. "Apple values technology and relies on technology to sell their hardware products," he said. therefore, it is believed that they will adopt the best technology (that is, Broadcom technology). "

Like most companies in Apple and the electronics supply chain, Broadcom is re-evaluating where its products are purchased and produced. Previously, Broadcom also suffered product shortages and supply disruptions as a result of the epidemic.

In addition to a very small number of professional parts, Broadcom also outsources its semiconductor manufacturing tasks. Mr Chen said he was also considering Intel as a potential new contract partner as an alternative to TSMC, its main supplier.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.