You are on page 1of 38

A Progressive Digital Media business

COMPANY PROFILE

Broadcom Limited
(formerly Avago
Technologies Limited)

REFERENCE CODE: 06A8D300-BF40-4834-B38A-E48FBF4CD49B


PUBLICATION DATE: 08 Sep 2016
www.marketline.com
COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED
Broadcom Limited (formerly Avago
Technologies Limited)
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3


Key Facts ......................................................................................................................... 3
Business Description .....................................................................................................4
History ............................................................................................................................. 6
Key Employees ...............................................................................................................9
Key Employee Biographies .........................................................................................11
Major Products & Services ..........................................................................................17
Revenue Analysis .........................................................................................................19
SWOT Analysis .............................................................................................................21
Top Competitors ...........................................................................................................28
Company View ..............................................................................................................29
Locations And Subsidiaries ........................................................................................35

Broadcom Limited (formerly Avago Technologies Page 2


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company Overview
Company Overview

COMPANY OVERVIEW
Broadcom Limited (formerly Avago Technologies Limited) (Broadcom or "the company") is a diversified
global semiconductor company offering a range of analog and digital semiconductor connectivity
solutions for wireless communications, wired infrastructure, enterprise storage, and industrial markets.
The company primarily operates in Asia, Americas and Europe. It is co-headquartered in Singapore City,
Singapore and San Jose, California, the US and employed 8,200 people as of November 1, 2015.

The company recorded revenues of $6,824 million during the financial year ended November 2015
(FY2015), an increase of 59.9% over FY2014. The operating profit of the company was $1,632 million in
FY2015, as compared to an operating profit of $438 million in FY2014. The net profit of the company was
$1,364 million in FY2015, as compared to a net profit of $263 million in FY2014.
Key Facts

KEY FACTS

Head Office Broadcom Limited (formerly Avago Technologies Limited)


1 Yishun Avenue 7
Singapore City 768923
SGP
Phone 65 6755 7888
Fax
Web Address http://www.broadcom.com
Revenue / turnover (USD Mn) 6,824.0
Financial Year End November
Employees 8,200
NASDAQ Ticker AVGO

Broadcom Limited (formerly Avago Technologies Page 3


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Business Description
Business Description

BUSINESS DESCRIPTION
Broadcom Limited (formerly Avago Technologies Limited) (Broadcom or "the company") is a designer,
developer and supplier of a range of analog and digital semiconductor connectivity solutions. The
company’s products and solutions are used in data center networking, home connectivity, broadband
access, telecommunications equipment, smartphones and base stations, data center servers and
storage, factory automation, power generation and alternative energy systems, and displays. The
company primarily operates in China, the US, Singapore, and other countries.

The company operates through four reportable segments aligned with its principal target markets:
wireless communications, wired infrastructure, enterprise storage, and industrial and other.

Broadcom’s wireless communication segment offers a variety of radio frequency (RF) semiconductor
devices that amplify, and filter, RF signals. The company's portfolio of products includes front end
modules (FEMs) that incorporate multiple die into multi-function RF devices; duplexers and multiplexers,
which are a combination of a transmit and a receive filter in a single device; monolithic or discrete
microwave integrated circuit (IC) filters; diodes; and discrete transistors. The segments products are
primarily used in smartphones and base stations. In addition to RF devices, the company provides
optoelectronic sensors for mobile handset applications.

The company’s wired infrastructure segment offers transceivers that receive and transmit information
along optical fibers for the storage and Ethernet networking markets. The segment develops and
distributes fiber optic products and vertical-cavity surface emitting lasers (VCSELs) based products,
including high bandwidth parallel optic transceivers and modules. In storage markets, the company
focuses on fiber channel-based applications. The company also supplies parallel optic transceivers and
optical laser and receiver components to the access, metro and long-haul telecommunication markets. It
is also involved in the distribution of high speed serializer/deserializer application specific integrated
circuit (ASICs) solutions for enterprise networking and server input/output (I/O) applications.

The company's enterprise storage products are designed to enable secure movement of digital data to
and from host machines such as servers, personal computers and storage systems to the underlying
storage devices including hard disk drives (HDDs) and solid state drives (SSDs). The segment provides
read channel-based system on chip (SoCs) and preamplifiers to HDD original equipment manufacturer
(OEMs). In addition, the company supplies custom flash controllers to SSD OEMs, and statistical analysis
system (SAS) and redundant array of independent disk (RAID) controller and adapter solutions to server
and storage system OEMs. The segment provides peripheral component interconnect (PCI), PCIe

Broadcom Limited (formerly Avago Technologies Page 4


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Business Description

semiconductors and also offers PCIe switches and bridges for servers, storage systems, gaming and
workstation systems, networking and communications systems and industrial equipment.

The company's industrial and other segment offers a range of products for the general industrial and
automotive markets. It offers optical isolators, which provide electrical insulation and signal isolation for
signaling systems that are susceptible to electrical noise or interference. For industrial motors and robotic
motion control, Broadcom offers optical encoders, as well as ICs for the controller and decoder functions.
For electronic signs and signals, it supplies LED assemblies to support traffic signals, commercial signs
and other displays. For industrial networking, the company provides optical transceivers that enable quick
and interoperable networking and factory automation. This segment also includes IP licensing business of
the company.

Broadcom Limited (formerly Avago Technologies Page 5


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
History
History

HISTORY
Avago Technologies Limited (Avago or "the company") was founded in 1961. During 1960s, the company
introduced the first commercially available light-emitting diode (LED) dot matrix displays. Avago
introduced fiber optic transmitters and receivers for data communications during 1970s. During 1990s, the
company formed Semiconductor Products Group to increase leverage of core semiconductor
competencies to fulfill customer requirements across a broad range of emerging technologies and
standards.

In 2002, the company acquired RedSwitch and added InfiniBand and RapidIO to its product portfolio.

Avago was incorporated under the laws of the Republic of Singapore in 2005. In 2007, the company
acquired fiber business from Infineon. In the following year, Avago acquired bulk acoustic wave (BAW)
business from Infineon. In the same year, the company acquired Nemicon to complement its motion
control product line.

In 2009, the company's shares were listed on the NASDAQ under the symbol AVGO. In the same year,
the company introduced direct current (DC) to 80 gigahertz (GHz) traveling wave amplifier for microwave
radio systems and satellite very small aperture terminals (VSAT) applications.

Avago introduced new miniature optical finger navigation input system for cell phones and portable
electronic devices, in 2010. In the same year, the company introduced a 4G/LTE Band 7 duplexer,
bringing optimized quality of voice service and battery life of FBAR technology to emerging mobile
handsets and data terminals.

In 2011, the company introduced three-channel reflective encoder and hall-effect magnetic encoder for
industrial applications. In the following year, Avago introduced precision optical Isolation amplifiers
optimized for voltage sensing. It also introduced Vortex Gearbox family of 28nm CMOS 100G
Ethernet/OTN PHYs.

During 2013, the company acquired Javelin Semiconductor, a developer of high performance radio
frequency (RF) and mixed signal CMOS integrated circuits (ICs) for wireless communications. Further in
2013, the company acquired CyOptics, an optical chip and component technologies provider.

In 2014, the company expanded its industry family of 12 Gbps SAS Host Bus Adapters (HBAs) by
introducing new 16-port solutions, 9300-16i HBA.

In 2014, the company introduced an optocoupler-based photovoltaic driver device, ACPL-K30T, designed
to drive high voltage metal oxide semiconductor field effect transistor (MOSFET) and withstand extreme
heat for automotive under-the-hood applications. In the same year, Avago completed its previously
announced sale of LSI's Axxia networking business and related assets to Intel for $650 million.

In 2014, Dell selected the company's 12 Gigabits per second (Gbps) SAS technology for use in its Dell
PowerEdge RAID Controllers (PERC9) for their 13th generation PowerEdge servers to deliver new level

Broadcom Limited (formerly Avago Technologies Page 6


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
History

of storage management.

In 2014, the company acquired PLX Technology, a developer of PCI Express silicon and software
connectivity solutions, in an all-cash transaction valued at approximately $309 million. In the same year,
Avago agreed to sell LSI's Axxia Networking Business and related assets to Intel for $650 million.
Subsequently, Avago in collaboration with Supermicro and VMware demonstrated a virtual hybrid cloud.
The solution designed for multiple workloads is enabled by the combination of Avago and Supermicro
enterprise-class server hardware running VMware Virtual SAN software.

In 2014, the company acquired LSI Corporation in an all-cash transaction valued at $6.6 billion. This
acquisition creates a diversified semiconductor company with approximately $5 billion in projected annual
revenues. In the same year, the company entered into a definitive asset purchase agreement under
which Seagate agreed to acquire the assets of LSI's Accelerated Solutions Division (ASD) and Flash
Components Division (FCD) for $450 million in cash.

In February 2015, the company introduced two new shared storage solutions, Syncro 9380-8e, Syncro
9361-8i, with 12 Gbps SAS technology. Subsequently, the company introduced two new sets of gate
drive optocoupler devices, 1.0A and 2.5A, designed to protect and drive the power semiconductors, which
are used in power inverters, motor drives, and switching power supplies (SPS). In the same month, the
company acquired Emulex in an all-cash transaction valued at $606 million. The acquisition is expected
to strengthen the company's portfolio serving the enterprise storage end market.

In March 2015, the company introduced 100G transceiver module devices, the AFBR-89CDDZ and
AFCT-8450Z for 100GbE short-range data center interconnects and for 100GbE long range data
communications respectively. Subsequently, the company introduced new micro-integrated tunable laser
assembly (Micro-ITLA) device, the AFCU-UITLAXX, designed for both the transmission and local
oscillator laser in coherent applications.

In May 2015, the company completed its previously announced acquisition of Emulex. In the same
month, the company entered into a definitive agreement to acquire Broadcom Corporation, a provider of
semiconductor solutions for wired and wireless communications for approximately $37 billion, including
$17 billion in cash and $20 billion in stock. The acquisition is expected to create a global diversified leader
in wired and wireless communication semiconductors.

In June 2015, the company introduced a new series of high resolution three-channel optical incremental
encoder modules, the AEDT-981x for industrial motion control applications including direct current (DC)
servo motors, linear and rotary actuators, factory automation equipment, three dimensional (3D) printers,
robotics and drones.

Broadcom Limited (Broadcom or “the company”) completed its acquisition of Avago pursuant to a scheme
of arrangement under Singapore law, in February 2016. As part of the deal, Avago changed its name to
Broadcom Limited.

In April 2016, Cypress Semiconductor agreed to acquire Broadcom's Wireless Internet of Things (IoT)
business and related assets in an all-cash transaction valued at $550 million. Under the terms of the deal,

Broadcom Limited (formerly Avago Technologies Page 7


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
History

Cypress will acquire Broadcom's Wi-Fi, Bluetooth and Zigbee IoT product lines and intellectual property,
along with its WICED brand and developer ecosystem.

Broadcom Limited (formerly Avago Technologies Page 8


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employees
Key Employees

KEY EMPLOYEES

Name Job Title Board


Hock E. Tan President and Chief Executive Officer Executive Board
Henry Samueli Chief Technical Officer and Director Executive Board
James V. Diller Chairman of the Board Non Executive Board
Kenneth Y. Hao Director Non Executive Board
Justine F. Page Director Non Executive Board
Donald Macleod Director Non Executive Board
Peter J. Marks Director Non Executive Board
Eddy Hartenstein Director Non Executive Board
Lucien Y.K Wong Director Non Executive Board
Lewis C. Eggebrecht Director Non Executive Board
Bryan T. Ingram Senior Vice President and General Senior Management
Manager, Wireless Semiconductor
Charlie Kawwas Senior Vice President and Chief Sales Senior Management
Officer
Andy Nallappan Vice President, Chief Information Senior Management
Officer, Global Information Technology
Patricia H. McCall Vice President and General Counsel Senior Management
Kirsten Spears Vice President, Corporate Controller Senior Management
and Principal Accounting Officer
Thomas Krause Vice President Corporate Development Senior Management
and Acting Chief Financial Officer
Boon Chye Ooi Senior Vice President, Global Senior Management
Operations
Ah-Chee Neo Vice President, Worldwide Quality Senior Management
Ivy Pong Vice President, Global Taxation Senior Management
Doug Smith Vice President, Central Engineering Senior Management
(R&D)
Debbie Streeter Vice President, Human Resources Senior Management
Fatt Lun Ho Vice President and General Manager, Senior Management
Optoelectronic Products Division
Sally Doherty Vice President and General Manager, Senior Management
PreAmp Components Division
Tze Siong Chong Vice President and General Manager, Senior Management
Isolation Products Division
Jeff Hoogenboom Vice President and General Manager, Senior Management
Emulex Connectivity Division

Broadcom Limited (formerly Avago Technologies Page 9


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employees

Hassan Hussain Vice President and General Manager, Senior Management


Motion Control Products Division
Frank Ostojic Senior Vice President and General Senior Management
Manager, ASIC Products Division
Michael E. Hurlston Senior Vice President and General Senior Management
Manager, Mobile Connectivity Products
Division
Rich Nelson Senior Vice President and General Senior Management
Manager, Set-Top Box and Cable
Modem Products Division
Sudhakar Sabada Senior Vice President and General Senior Management
Manager, Processor Products Division

Broadcom Limited (formerly Avago Technologies Page 10


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employee Biographies
Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Hock E. Tan

Board:Executive Board
Job Title:President and Chief Executive Officer
Since:2016
Age:64

Mr. Tan has been the President, Chief Executive Officer and Director at Broadcom Limited (formerly
Avago Technologies Limited) (Broadcom or "the company") since 2016. He served as the Chairman of
the Board of Directors at Integrated Device Technology (IDT) from 2005 to 2008. Prior to that, Mr. Tan
served as the President and Chief Executive Officer at Integrated Circuit Systems (ICS), from 1999 to
2005. Prior to ICS, he was the Vice President of Finance at Commodore International from 1992 to 1994.
Mr. Tan previously held several senior management positions at PepsiCo and at General Motors. He was
a Managing Director at Pacven Investment from 1988 to 1992 and at Hume Industries from 1983 to 1988.

Henry Samueli

Board:Executive Board
Job Title:Chief Technical Officer and Director
Since:2016
Age:61

Mr. Samueli has been the Chief Technical Officer and Director at Broadcom since 2016. Prior to his
current role, he was the Co-Founder, Chairman of the Board and Chief Technical Officer at Broadcom
Corporation. Mr. Samueli serves as a Professor at the University of California, Los Angeles (UCLA) and
as a Distinguished Adjunct Professor at the University of California, Irvine (UCI). Previously, he held a
variety of engineering management positions at TRW.

James V. Diller

Board:Non Executive Board


Job Title:Chairman of the Board
Since:2016
Age:80

Mr. Diller has been the Chairman of the Board at Broadcom since 2016. He was a Founder at PMC-Sierra
(PMC) and served as its Chief Executive Officer from 1983 to 1997. Mr. Diller was the Chairman of the
Board of Directors at PMC from 1993 to 2000, and also was the Vice Chairman from 2000 to 2013. He
served as a Director at Intersil from 2002 to 2015 and as Interim President and the Chief Executive
Officer from 2012 to 2013.

Broadcom Limited (formerly Avago Technologies Page 11


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employee Biographies

Kenneth Y. Hao

Board:Non Executive Board


Job Title:Director
Since:2016
Age:47

Mr. Hao has been a Director at Broadcom since 2016. He is a Managing Partner and Managing Director
at Silver Lake. Prior to joining Silver Lake in 2000, Mr. Hao served as the Managing Director at
Hambrecht & Quist. He serves as a Director at Silver Lake's portfolio companies, including Symantec.

Justine F. Page

Board:Non Executive Board


Job Title:Director
Since:2016
Age:53

Ms. Page has been a Director at Broadcom since 2016. She served as the Chief Financial Officer, the
Vice President of Finance, Treasurer, and Secretary at ICS from 1999 to 2005. Ms. Page was also the
Director of Finance and Administration and Assistant Treasurer at ICS. She served as a Director at
Techwell from 2006 to 2010.

Donald Macleod

Board:Non Executive Board


Job Title:Director
Since:2016
Age:67

Mr. Macleod has been a Director at Broadcom since 2016. He serves on the Board of Directors at
Knowles. Mr. Macleod was the President and Chief Executive Officer from 2009 to 2011 at National
Semiconductor. Prior to that, he was the President and Chief Operating Officer at National Semiconductor
from 2005 to 2009 and also was its Executive Vice President of Finance and Chief Financial Officer. Mr.
Macleod served as the Chairman of the Board of Directors at National Semiconductor from 2010 to 2011.
He serves as the Chairman of the Board of Directors at Intersil.

Peter J. Marks

Board:Non Executive Board


Job Title:Director
Since:2016
Age:62

Broadcom Limited (formerly Avago Technologies Page 12


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employee Biographies

Mr. Marks has been a Director at Broadcom since 2016. He is the Chief Executive Officer at Executive
Consultant, which he founded in 2013. Prior to that, Mr. Marks served as the Chairman, President and
Chief Executive Officer at Robert Bosch from 2006 to 2011 and also was its senior executive for various
divisions; automotive electronics, semiconductors, body electronics/electric drivers and energy systems.

Eddy Hartenstein

Board:Non Executive Board


Job Title:Director
Since:2016

Mr. Hartenstein has been a Director at Broadcom since 2016. He was the publisher and Chief Executive
Officer at the Los Angeles Times from 2008 to 2014. Mr. Hartenstein served as the Co-President at
Tribune Company from 2010 to 2011 and as the President and Chief Executive Officer from 2011 to
2013. Previously, he was the Vice Chairman and a Member of the Board of Directors at DIRECTV from
2003 until 2004. Mr. Hartenstein served as the Chairman and Chief Executive Officer at DIRECTV from
2001 to 2004 and as the President from 1990 to 2001.

Lucien Y.K Wong

Board:Non Executive Board


Job Title:Director
Since:2016
Age:62

Mr. Wong has been a Director at Broadcom since 2016. He served as the Chairman and a Senior Partner
at Allen & Gledhill and as its Managing Partner from 1998 to 2012. Mr. Wong serves on the Board of
Directors at Hap Seng Plantations; Singapore Airlines; and Singapore Press Holdings. He served on the
board at Cerebos Pacific from 2004 to 2012. Mr. Wong serves as the Chairman at Maritime and Port
Authority of Singapore, the Chairman of the Board of Directors at Singapore International Arbitration
Centre, and as a Member of the Board of Trustees at Singapore Business Federation.

Lewis C. Eggebrecht

Board:Non Executive Board


Job Title:Director
Since:2016
Age:72

Mr. Eggebrecht has been a Director at Broadcom since 2016. He served as the Vice President and Chief
Scientist from 1998 to 2003. Mr. Eggebrecht held several executive positions at various organizations
including as the Chief Multimedia Architect at Phillips Semiconductor Manufacturing, as the Graphics
Architect at S3 Graphics, as the Vice President of Research and Development at Commodore
International. He served as a Small Systems Architect, and a Chief Architect and Design Team Leader at
International Business Machines (IBM).

Broadcom Limited (formerly Avago Technologies Page 13


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employee Biographies

Bryan T. Ingram

Board:Senior Management
Job Title:Senior Vice President and General Manager, Wireless Semiconductor
Since:2016
Age:51

Mr. Ingram has been the Senior Vice President and General Manager of Wireless Semiconductor at
Broadcom since 2016. From 2007 to 2013, he served as the Senior Vice President and General Manager
of Wireless Semiconductor Division (WSD) at the company. Prior to that, he was the Vice President of
WSD from 2005 to 2007. Prior to joining the company, Mr. Ingram was the Vice President and General
Manager at SPG's Wireless Semiconductor Division.

Charlie Kawwas

Board:Senior Management
Job Title:Senior Vice President and Chief Sales Officer
Since:2016
Age:45

Dr. Kawwas has been the Senior Vice President and Chief Sales Officer at Broadcom since 2016. He
joined the company through the acquisition of LSI, where he was the Head of Worldwide Sales. Dr.
Kawwas held several roles at LSI including the Vice President of Sales and Marketing for the Networking
Division and the Vice President of Marketing for the networking and storage product group. Before joining
LSI, he was the Leader of Product Line Management for the Optical Ethernet and Multi-service Edge
portfolio at Nortel.

Andy Nallappan

Board:Senior Management
Job Title:Vice President, Chief Information Officer, Global Information Technology
Since:2016

Mr. Nallappan has been the Vice President and Chief Information Officer of Global Information
Technology at Broadcom since 2016. He held several key management roles overseeing enterprise
applications, enterprise infrastructure and R&D computing at Hewlett-Packard (HP), Agilent and Avago.

Patricia H. McCall

Board:Senior Management
Job Title:Vice President and General Counsel
Since:2016
Age:61

Broadcom Limited (formerly Avago Technologies Page 14


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employee Biographies

Ms. McCall has been the Vice President and General Counsel at Broadcom since 2016. Prior to her
current role, she served as a Director of Litigation at Adobe Systems from 2006 to 2007. Ms. McCall
served as the Senior Vice President, General Counsel and Secretary at ChipPAC from 2003 to 2004. He
served as the Senior Vice President of Administration, General Counsel and Secretary at ChipPAC from
2000 to 2003. From 1995 to 2000, Ms. McCall was at National Semiconductor, where she was an
Associate General Counsel, and prior to that she was a Partner at Pillsbury, Madison & Sutro.

Kirsten Spears

Board:Senior Management
Job Title:Vice President, Corporate Controller and Principal Accounting Officer
Since:2016

Ms. Spears has been the Vice President, Corporate Controller and Principal Accounting Officer at
Broadcom since 2016. Previously, she was the Vice President and Corporate Controller at LSI. Ms.
Spears joined LSI in 1997 and held a number of management positions in accounting and reporting
before becoming the Corporate Controller in 2007. Before LSI, she worked at PriceWaterhouseCooper
and Bank of America.

Thomas Krause

Board:Senior Management
Job Title:Vice President Corporate Development and Acting Chief Financial Officer
Since:2016

Mr. Krause has been the Vice President of Corporate Development and Acting Chief Financial Officer at
Broadcom since 2016. Previously, he ran his own financial advisory firm where he represented several
public and private technology companies. Prior to this, Mr. Krause served as the Vice President of
Business Development at Techwell.

Boon Chye Ooi

Board:Senior Management
Job Title:Senior Vice President, Global Operations
Since:2016
Age:62

Mr. Ooi has been the Senior Vice President of Global Operations at Broadcom since 2016. He was the
Senior Vice President of Worldwide Operations at Xilinx from 2003 to 2008. Prior to Xilinx, Mr. Ooi had a
long career at Intel, where he served in a variety of management positions.

Ah-Chee Neo

Board:Senior Management
Job Title:Vice President, Worldwide Quality

Broadcom Limited (formerly Avago Technologies Page 15


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Key Employee Biographies

Since:2016

Mr. Neo has been the Vice President of Worldwide Quality at Broadcom since 2016. He was the Quality
Manager at Agilent’s Semiconductor Products Group. Prior to joining Agilent, Mr. Neo worked at Bell
Labs, AT&T and Lucent in various supply chain and quality roles in Asia Pacific region.

Ivy Pong

Board:Senior Management
Job Title:Vice President, Global Taxation
Since:2016

Ms. Pong has been the Vice President of Global Taxation at Broadcom since 2016. She served at KLA-
Tencor and Altera. Ms. Pong started her career at PricewaterhouseCoopers, where she served for seven
years.

Doug Smith

Board:Senior Management
Job Title:Vice President, Central Engineering (R&D)
Since:2016

Mr. Smith has been the Vice President of Central Engineering (R&D) at Broadcom since 2016. He served
as the Memory Compiler Design Manager at Motorola’s Semiconductor Products Sector. Mr. Smith also
held senior engineering positions at National Semiconductor and Fairchild Semiconductor.

Broadcom Limited (formerly Avago Technologies Page 16


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Major Products & Services
Major Products & Services

MAJOR PRODUCTS & SERVICES


Broadcom Limited (formerly Avago Technologies Limited) (Broadcom or "the company") is a diversified
global semiconductor company offering a range of analog and digital semiconductor connectivity
solutions for wireless communications, wired infrastructure, enterprise storage, and industrial markets.
The company's key products and services include the following:

Wireless Communications

Radio frequency (RF) power amplifiers

RF filters

RF front end modules (FEMs)

Ambient light sensors

Proximity sensors

Low noise amplifiers

Multimarket-wave mixers

Wired Infrastructure

Fiber optic transceivers

Serializer/deserializer (SerDes) application-specific integrated circuit (ASIC) solutions

Optical laser and receiver components

Enterprise Storage

Broadcom Limited (formerly Avago Technologies Page 17


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Major Products & Services

System-on-chip (SoCs)

Pre amplifiers

Custom flash controllers

Small Computer System Interface (SCSI)

Redundant array of independent disk (RAID) controllers and adapters

Industrial and other

Industrial fiber optics

Motion control encoders and subsystems

Light emitting diodes (LEDs)

Broadcom Limited (formerly Avago Technologies Page 18


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Revenue Analysis
Revenue Analysis

REVENUE ANALYSIS
Broadcom Limited (formerly Avago Technologies Limited)

The company recorded revenues of $6,824 million during the financial year ended November 2015
(FY2015), an increase of 59.9% over FY2014. In FY2015, China, the company's largest geographic
market, accounted for 53.9% of the total revenues.

Broadcom generates revenues through four business segments: wireless communications (37.2% of the
total revenues in FY2015), enterprise storage (31.9%), wired infrastructure (21.7%) and industrial and
other (9.2%).

Revenues by segments

In FY2015, the wireless communications segment recorded revenues of $2,536 million, an increase of
50.1% over FY2014.

The enterprise storage segment recorded revenues of $2,180 million in FY2015, as compared to $867
million in FY2014.

The wired infrastructure segment recorded revenues of $1,479 million in FY2015, an increase of 28.5%
over FY2014.

The industrial and other segment recorded revenues of $629 million in FY2015, an increase of 11.9%
over FY2014.

Revenues by geography

Broadcom Limited (formerly Avago Technologies Page 19


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Revenue Analysis

China, Broadcom’s largest geographical market, accounted for 53.9% of the total revenues in FY2015.
Revenues from China reached $3,675 million in FY2015, an increase of 74.5% over FY2014.

The US accounted for 11.1% of the total revenues in FY2015. Revenues from the US reached $755
million in FY2015, an increase of 55.3% over FY2014.

Singapore accounted for 3% of the total revenues in FY2015. Revenues from Singapore reached $208
million in FY2015, an increase of 29.2% over FY2014.

Other accounted for 32% of the total revenues in FY2015. Revenues from other reached $2,186 million in
FY2015, an increase of 44.2% over FY2014.

Broadcom Limited (formerly Avago Technologies Page 20


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis
SWOT Analysis

SWOT ANALYSIS
Broadcom Limited (formerly Avago Technologies Limited) (Broadcom or "the company") is a diversified
global semiconductor company offering a range of analog and digital semiconductor connectivity
solutions for wireless communications, wired infrastructure, enterprise storage, and industrial markets.
The company's strong focus on innovation and research and development (R&D) provides a competitive
advantage by enabling it to launch products that effectively enhance revenues and market share.
However, intense competition may adversely affect the company's market share and revenues in the
coming years.

Strength Weakness

Strong focus on R&D Concentrated customer base


Products and services catering to clients across
various industries
Global presence
Opportunity Threat

Strategic acquisition of Broadcom Corporation Intense competition


Positive outlook for smartphones market Dependence on contract manufacturing and
Growing LTE adoption outsourcing of supply chain
Short life cycles and rapid technological changes

Strength

Strong focus on R&D

Broadcom has strong focus on R&D. The company is committed to continuous investment in product
development, with a focus on rapidly introducing new, proprietary products. Over the last few years,
Broadcom's R&D efforts allowed it to develop several innovative products which provided the company
with significant competitive advantages in certain target markets. Broadcom has a history of developing
innovative technologies. For instance in 2015, the company introduced two new shared storage solutions,
Syncro 9380-8e, Syncro 9361-8i, with 12 Gbps SAS technology. Further, the company introduced two
new sets of gate drive optocoupler devices, 1.0A and 2.5A, designed to protect and drive the power
semiconductors, which are used in power inverters, motor drives, and switching power supplies (SPS).
Also in 2015, the company introduced 100G transceiver module devices, the AFBR-89CDDZ and AFCT-
8450Z for 100GbE short-range data center interconnects and for 100GbE long range data
communications respectively. Subsequently, the company introduced new micro-integrated tunable laser
assembly (Micro-ITLA) device, the AFCU-UITLAXX, designed for both the transmission and local
oscillator laser in coherent applications. Further in 2015, the company introduced a new series of high
resolution three-channel optical incremental encoder modules, the AEDT-981x for industrial motion

Broadcom Limited (formerly Avago Technologies Page 21


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis

control applications including direct current (DC) servo motors, linear and rotary actuators, factory
automation equipment, three dimensional (3D) printers, robotics and drones.

Strong focus on R&D has allowed the company to develop innovative, sustainable and higher value
product platforms which provided significant competitive advantages over its peers. In addition,
continuous introduction of products allowed Broadcom to build strong reputation in the market. Continued
innovation and reputation will allow the company to earn attractive margins by developing high value-add
products.

Products and services catering to clients across various industries

The company offers a broad portfolio of products to clients across four key target markets, including
wireless communications, wired infrastructure, enterprise storage, and industrial and other. Applications
for the company's products in these target markets include cellular phones and base stations, data
networking, storage and telecommunications equipment, factory automation, power generation and
alternative energy systems, and displays. For the wireless communications market, Broadcom offers a
variety of RF semiconductor devices, including RF FEMs, duplexers, monolithic or discrete microwave
integrated circuit (IC) filters, diodes and discrete transistors. In addition to RF devices, the company
provides a variety of optoelectronic sensors for mobile handset applications.

For the wired infrastructure market, the company supplies transceivers for the storage and Ethernet
networking markets. In Ethernet networking, the company offers higher bandwidth applications, principally
10 gigabit (G), 40G and 100G for data center as well as enterprise customers. In storage market,
Broadcom offers fiber channel-based applications, including 8G and emerging 16G transceivers. In
addition, the company supplies parallel optic transceivers with as many as 12 parallel channels for core
routing, server, and high performance computing applications. Broadcom also supplies optical laser and
receiver components to the access, metro and long-haul telecommunication markets. The company
provides high speed SerDes products integrated into ASICs for enterprise networking and server I/O
applications.

The company offers enterprise storage products such as hard disk drives (HDDs) and solid states drives
(SSDs). The company provides read channel-based system on chip (SoCs) and preamplifiers to HDD
original equipment manufacturers (OEMs). In addition, the company provides custom flash controllers to
SSD OEMs; serial attached small computer system interface (SCSI) (SAS) and redundant array of
independent disks (RAID) controller and adapter solutions to server and storage system original
equipment manufacturers (OEMs); and PCIe switches as well as PCIe bridges. In addition, Broadcom
offer optical isolators or optocouplers for a diverse set of applications, including industrial motors,
automotive systems including those used in hybrid engines, power generation and distribution systems,
switching power supplies, motion sensors, telecommunications equipment, computers and office

Broadcom Limited (formerly Avago Technologies Page 22


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis

equipment, plasma displays, and military electronics. For industrial motors and robotic motion control, the
company supplies optical encoders, as well as ICs for the controller and decoder functions. For electronic
signs and signals market, the company provides LED assemblies, enabling it to support traffic signals,
large commercial signs and other displays. For industrial networking, the company provides optical
transceivers using plastic optical fiber that enable quick and interoperable networking and factory
automation.

Broad product portfolio reduces the business risks and provides cross selling opportunities to the
company. In addition, it enables Broadcom to exploit opportunities in new as well as existing markets.

Global presence

Broadcom has a diversified global presence. The company through its design, technology transfer and
manufacturing stages across all geographies is well positioned to serve its customers globally. Broadcom
has a number of sales offices located in various countries, with a significant presence in Asia, which is a
key center of the worldwide electronics supply chain. Many of the company's customers design products
in North America or Europe that are then manufactured in Asia. In addition, the company has regional
customer support call centers, where the company addresses customer issues and handle logistics and
other order fulfillment requirements.

In addition, the company witnessed strong growth across all geographic markets. For instance in FY2015,
China, Broadcom’s largest geographic market witnessed a growth of 74.5% over FY2014. In addition,
revenues from the US, Singapore and other geographies grew by 55.3%, 29.2%, and 44.2%,
respectively. The company's widespread footprint reduces its exposure to risks associated with operating
in a particular market. It also provides Broadcom with benefits such as cost reductions through
economies of scale. In addition, this geographic diversity provides proximity to customers, enabling the
development of close relationships.

Weakness

Concentrated customer base

The company has highly concentrated customer base. It is dependent on reasonably small number of
direct customers, OEMs, contract manufacturers and distributors for a majority of its business, revenue
and results of operations. During FY2015, direct sales to Foxconn accounted for 24% of the company’s
net revenue and top five direct customers, which included one distributor, collectively accounted for 46%
of net revenue. During FY2014, direct sales to Foxconn accounted for 20% of the company’s net revenue
and top five customers, which included two distributors, collectively accounted for 41% of net revenue.

Broadcom Limited (formerly Avago Technologies Page 23


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis

The customer concentration increases the risk of quarterly fluctuations in the operating results and
sensitivity to any material, adverse developments experienced by the company's significant customers.

Opportunity

Strategic acquisition of Broadcom Corporation

The company acquired Broadcom Corporation, a semiconductor solution provider for wired and wireless
communication market, for a total consideration of $37 billion, including $17 billion in cash and
approximately $20 billion in stock. The enterprise value of the combined company is valued at
approximately $77 billion. The acquisition enhances the breadth of technology and product capability of
the company. Broadcom Corporation is one of the leading providers of digital CMOS semiconductor
solutions for wired and wireless communications. The company offers connectivity chips, which are used
widely in smartphones made by Apple and Samsung Electronics and wireless connectivity devices. The
combination will create a global diversified player in wired and wireless communication semiconductors.
Moreover, the combined company will have one of most diversified communications platforms in the
semiconductor industry, with combined annual revenues of approximately $15 billion. According to the
company, the combination of both the companies will create a global diversified leader in wired and
wireless communication semiconductors market.

The strategic acquisition of Broadcom Corporation will enhance the topline performance of the company
and also provide scale advantages in the medium to long term.

Positive outlook for smartphones market

The smartphone market is expected to grow at a robust pace in the medium term. According to industry
estimates, global smartphone shipments are expected to grow from 1,429.8 million shipments in 2015 to
1,862.3 million shipments in 2019, growing at a CAGR of 7% during 2015-19 periods. Broadcom offers a
range of solutions for the smartphone markets. Key products offered by Broadcom for the smartphone
market include RF power amplifiers, RF filters, RF FEMs, ambient light sensors and proximity sensors.
Robust outlook for the smartphone is expected to further boost the demand for the company's solutions
thus increasing its sales in the coming years.

Growing LTE adoption

The outlook for the Long Term Evolution (LTE) adoption is robust primarily due to the increased demand
for faster data rates and better spectral efficiency in the wake of heavy data usage, increased penetration
of smart devices and the demand for quality services on the move. The growth in the market is further
enhanced by the planned large-scale adoption of LTE by operators in the Asia Pacific regions, primarily
China. According to industry estimates, the worldwide LTE subscriber base reached nearly 1 billion in the
last quarter of 2015. Furthermore, the global market is expected to reach 3.6 billion by year-end 2020.

Broadcom Limited (formerly Avago Technologies Page 24


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis

Broadcom is keen to enhance its market share in the growing LTE market. The company's wireless
communications business offers a variety of RF semiconductor devices, including monolithic microwave
IC filters and duplexers. The company also provides a variety of optoelectronic sensors for mobile
handset applications. Moreover, the company offers a family of LTE power amplifiers solutions which offer
higher performance in a small form factor. The company's robust LTE portfolio coupled with strong growth
in the end market would provide incremental growth opportunities to enhance its revenues and market
share in the coming years.

Threat

Intense competition

The global semiconductor industry is highly competitive. The company's competitors range from large,
international companies offering a wide range of products to smaller companies specializing in niche
markets. Broadcom competes with integrated device manufacturers (IDMs) and fabless semiconductor
companies as well as the internal resources of large, integrated OEMs. The company competes on the
basis of quality, technical performance, price, product features, product system compatibility, system-level
design capability, engineering expertise, responsiveness to customers, new product innovation, product
availability, delivery timing and reliability, and customer sales and technical support.

In the wireless communications market, the company primarily competes with Murata Manufacturing, RF
Micro Devices, and Skyworks Solutions. Broadcom competes based on its expertise in amplifier design,
FBAR technology and module integration. In the wired infrastructure market, the company competes with
Finisar, IBM's Microelectronics Division, JDS Uniphase, ST Microelectronics, Sumitomo, BinOptics, and
Mitsubishi Electric. In addition, the company competes with Marvell Technology Group, and Texas
Instruments in the enterprise storage segment. Furthermore, in the industrial and other markets, the
company competes with Analog Devices, Cree, Hamamatsu Photonics, Heidenhain, Renesas Electronics
and Toshiba.

Also, several of the company's competitors are well established, have a more extensive product portfolio,
substantially greater market share, and manufacturing, financial, R&D and marketing resources to pursue
development, engineering, manufacturing, marketing and distribution of their products. In addition,
several of the company's competitors have longer independent operating histories, greater presence in
key markets, more comprehensive patent protection and greater name recognition. The competition in the
markets in which the company operates is expected to increase as existing competitors improve or
expand their product offerings and new companies enter the market.

Broadcom Limited (formerly Avago Technologies Page 25


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis

Intense competition may adversely impact the company's market share and revenues in the coming
years.

Dependence on contract manufacturing and outsourcing of supply chain

The company operates a primarily outsourced manufacturing business model that principally utilizes third-
party foundry and module assembly and test capabilities. As a result, Broadcom is highly reliant on third-
party foundry wafer fabrication capacity, including single-sourcing for many components or products. Most
of its products are designed to be manufactured in a specific process, typically at one particular foundry.
The company also uses third-party contract manufacturers for a significant majority of assembly and test
operations, including ASE Korea and Inari Technology. The ability and willingness of the contract
manufacturers to perform is largely outside the control of the company. If one or more of its contract
manufacturers or other outsourced providers fails to perform its obligations in a timely manner or at
satisfactory quality levels, Broadcom's ability to bring products to market could suffer, thus affecting its
reputation.

Moreover, the company does not have any long-term supply contracts with its contract manufacturers or
materials suppliers and may not be able to obtain the products or raw materials required for its business,
which could have a material adverse effect on its business. Broadcom purchases a significant portion of
its semiconductor materials and finished goods from a few suppliers and contract manufacturers. In
FY2015, the company purchased 51% of the materials for its manufacturing processes from six suppliers.
Furthermore, substantially all of these purchases are on a purchase order basis, and Broadcom has not
entered into long-term contracts with the contract manufacturers or suppliers. In the event that these
purchase orders or relationships with suppliers are terminated, the company cannot obtain sufficient
quantities of raw materials at reasonable prices, which could adversely impact its business, financial
condition and results of operations.

The company's dependence on contract manufacturing and outsourcing of supply chain may adversely
affect Broadcom's ability to bring products to market and damage its reputation. Additionally, it may also
impair the company's ability to operate effectively.

Short life cycles and rapid technological changes

The semiconductor industry is characterized with short life cycles and rapid technological changes. The
advancements in the field will lead to higher substitutions and therefore products in the industry suffer
short life cycles. Rapid changes in demand for its products reduce Broadcom’s ability to accurately
estimate the future requirements of its customers. The company will find it difficult to schedule production
and maximize utilization of manufacturing capacity. Replacing the production processes can result in

Broadcom Limited (formerly Avago Technologies Page 26


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
SWOT Analysis

inefficiencies and costs due to capacity constraints for new technology.

Furthermore, the company has to make substantial investments in the development of capabilities, in
resources such as R&D, technology licensing, test and tooling equipment, facility expansions and
personnel requirements. Due to these investments, the profitability of operations generally lags the sales
by considerable time. Fast pace of technology displacement will not give sufficient time to absorb the
investments and will lead to lower profitability of operations. Short life cycles associated with end markets
tend to impact the profitability of the company's operations. Rapid technological changes require high
R&D investments and if the company is unable to commercialize new products, Broadcom will experience
significant loss on invested capital. In addition, in an industry with such rapid changes, the company is
constantly under the threat from its competitors developing technological advances faster.

Broadcom Limited (formerly Avago Technologies Page 27


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Top Competitors
Top Competitors

TOP COMPETITORS
The following companies are the major competitors of Broadcom Limited (formerly Avago Technologies
Limited)

Analog Devices, Inc.


Finisar Corporation
Hamamatsu Photonics K.K.
International Business Machines Corporation
JDS Uniphase Corporation
Marvell Technology Group Ltd.
Mitsubishi Electric Corporation
Murata Manufacturing Co., Ltd.
Skyworks Solutions, Inc.
STMicroelectronics N.V.
Sumitomo Corporation
Texas Instruments Incorporated
Toshiba Corporation

Broadcom Limited (formerly Avago Technologies Page 28


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company View
Company View

COMPANY VIEW
An excerpt from the 'management's discussion and analysis of financial condition and results of
operations' section is given below. The statement has been taken from the company's 10-K filing for
FY2015.

Overview

We are a leading designer, developer and global supplier of a broad range of semiconductor devices with
a focus on analog III-V based products and complex digital and mixed signal complementary metal oxide
semiconductor based devices. We have a history of innovation and offer thousands of products that are
used in end products such as smartphones, enterprise servers and storage systems, hard disk drives,
solid state drives, data networking and telecommunications equipment, factory automation, industrial
equipment and consumer appliances. We have four reportable segments: wireless communications,
enterprise storage, wired infrastructure and industrial & other, which align with our target markets. We
differentiate ourselves through our high performance design and integration capabilities and focus on
developing products for target markets where we believe we can earn attractive margins.

Original equipment manufacturers, or OEMs, or their contract manufacturers, and distributors typically
account for the substantial majority of our sales. We have established strong relationships with leading
OEM customers across multiple target markets and we have a direct sales force focused on supporting
large OEMs. We also distribute a substantial portion of our products through our broad distribution
network, and a significant amount of these sales are to large global electronic components distributors,
including Avnet, Inc. and Arrow Electronics, Inc. We have a diversified and well-established base of
thousands of end customers, located throughout the world, which we serve through our multi-channel
sales and fulfillment system.

The demand for our products has been affected in the past, and is likely to continue to be affected in the
future, by various factors, including the following:

• general economic and market conditions in the semiconductor industry and in our target markets;

Broadcom Limited (formerly Avago Technologies Page 29


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company View

• our ability to define specifications for, develop or acquire, complete, introduce and market, new products
and technologies in a cost-effective and timely manner;

•the timing, rescheduling or cancellation of expected customer orders and our ability to manage
inventory;

• the rate at which our present and future customers and end-users adopt our products and technologies
in our target markets, and the rate at which our customers' products that include our technology are
accepted in their markets; and

• the qualification, availability and pricing of competing products and technologies and the resulting effects
on sales and pricing of our products.

Current uncertainty in global economic conditions, including the economic recovery in the United States
and the level of growth in China, still poses significant risks to our business. For example, customers may
defer purchases in response to tighter credit and negative financial news, which would in turn negatively
affect product demand and our results of operations.

Net Revenue

Substantially all of our net revenue is derived from sales of semiconductor devices that our customers
incorporate into electronic products. Our four reportable segments are wireless communications,
enterprise storage, wired infrastructure and industrial & other, which align with our target markets.
Applications for our products in these segments include smartphones, enterprise servers and storage
systems, hard disk drives, or HDDs, solid state drives, or SSDs, data networking and telecommunications
equipment, factory automation, industrial equipment and consumer appliances. The percentage of total
net revenue generated by sales in each of our segments varies from fiscal quarter to quarter, due largely
to fluctuations in end-market demand, including the effects of seasonality. The first fiscal quarter is often
our lowest revenue and cash generating quarter due, in part, to holiday shut downs at many OEM
customers and distributors, and the first half of the fiscal year has tended to generate lower revenue than
the second half of the fiscal year. However, sometimes typical seasonality and industry cyclicality are
overshadowed by other factors such as wider macroeconomic effects, the timing of significant product
transitions and launches by large OEMs, particularly in the wireless communications and enterprise

Broadcom Limited (formerly Avago Technologies Page 30


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company View

storage segments.

We use distributors for a significant portion of our business and recognize revenue upon delivery of
product to the distributors, which can cause our quarterly net revenue to fluctuate significantly. Such
revenue is reduced for estimated returns and distributor allowances. Historically, a relatively small number
of customers have accounted for a significant portion of our net revenue. Sales to distributors accounted
for 21% and 25% of our net revenue for the fiscal years ended November 1, 2015 and November 2, 2014,
respectively. During the fiscal year ended November 1, 2015, or fiscal year 2015, Foxconn Technology
Group companies, or Foxconn, accounted for 24% of our net revenue, and our top five direct customers,
which also included one distributor, collectively accounted for 46% of our net revenue. During the fiscal
year ended November 2, 2014, or fiscal year 2014, Foxconn accounted for 20% of our net revenue and
our top five direct customers, which also included two distributors, collectively accounted for 41% of our
net revenue. We believe our aggregate sales to Apple, Inc., when our direct sales to it are combined with
our sales to the contract manufacturers that it utilizes (which includes Foxconn), accounted for more than
20% of our net revenues for fiscal year 2015 and more than 15% for fiscal year 2014. We believe our
aggregate sales to Cisco Systems Inc., when our direct sales to it are combined with our sales to the
contract manufacturers that it utilizes, accounted for more than 10% of our net revenues for fiscal year
2013. We expect to continue to experience significant customer concentration in future periods. The loss
of, or significant decrease in demand from, any of our top ten direct or indirect customers could have a
material adverse effect on our business, results of operations and financial condition.

Costs and Expenses

Total cost of products sold. Cost of products sold consists primarily of the cost of semiconductor wafers
and other materials, and the cost of assembly and testing of those products. Cost of products sold also
includes personnel costs and overhead related to our manufacturing operations, including share-based
compensation, and related occupancy, computer services and equipment costs, manufacturing quality,
order fulfillment, warranty and inventory adjustments, including write-downs for inventory obsolescence,
energy costs, other manufacturing expenses and acquisition-related costs. Acquisition-related costs
include direct transaction costs and integration-related costs. Total cost of products sold also includes
amortization of intangible assets and restructuring charges.

Although we outsource a significant portion of our manufacturing activities, we also have some
proprietary semiconductor fabrication and assembly and test facilities. If we are unable to utilize our
owned fabrication and assembly and test facilities at a desired level, the fixed costs associated with these
facilities will not be fully absorbed, resulting in higher average unit costs and lower gross margins.

Broadcom Limited (formerly Avago Technologies Page 31


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company View

Research and development. research and development expense consists primarily of personnel costs for
our engineers engaged in the design and development of our products and technologies, including share-
based compensation expense. These expenses also include project material costs, third-party fees paid
to consultants, prototype development expense, allocated facilities costs and other corporate expenses,
computer services costs related to supporting computer tools used in the engineering and design process
and acquisition-related costs.

Selling, general and administrative. selling expense consists primarily of compensation and associated
costs for sales and marketing personnel, including share-based compensation expense, sales
commissions paid to our independent sales representatives, costs of advertising, trade shows, corporate
marketing, promotion, travel related to our sales and marketing operations, related occupancy and
equipment costs and other marketing costs. General and administrative expense consists primarily of
compensation and associated costs for executive management, finance, human resources and other
administrative personnel, outside professional fees, allocated facilities costs, acquisition-related costs and
other corporate expenses.

Amortization of intangible assets. In connection with acquisitions, we recognized intangible assets that
are being amortized over their estimated useful lives of 1 year to 25 years. We also recognized goodwill
and in-process research and development, which are not amortized, in connection with acquisitions.

Restructuring and asset impairment charges. Restructuring charges consist primarily of compensation
costs associated with employee exit programs, alignment of our global manufacturing operations,
rationalizing product development program costs, fixed asset impairments, facility and lease
abandonments and other exit costs, including curtailment of service or supply agreements.

Interest expense. Interest expense in fiscal years 2015 and 2014 included coupon interest, commitment
fees, accretion of the original issue discount and amortization of debt issuance costs related to our
outstanding debt.

Other income, net. Other income, net includes net realized gains on the sale of available-for-sale
securities, realized and unrealized gains (losses) on trading securities, gains on the sale of cost-method
investments, interest income, gains (losses) on currency remeasurement and other miscellaneous items.

Broadcom Limited (formerly Avago Technologies Page 32


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company View

Provision for income taxes. We have structured our operations to maximize the benefit from various tax
incentives and tax holidays extended to us in various jurisdictions to encourage investment or
employment. For example, we have obtained several tax incentives from the Singapore Economic
Development Board, an agency of the Government of Singapore, which provide that certain classes of
income we earn in Singapore are subject to tax holidays or reduced rates of Singapore income tax. Each
such tax incentive is separate and distinct from the others, and may be granted, withheld, extended,
modified, truncated, complied with or terminated independently without any effect on the other incentives.
In order to retain these tax benefits in Singapore, we must meet certain operating conditions specific to
each incentive relating to, among other things, maintenance of a corporate headquarters function and
specified intellectual property, or IP, activities in Singapore. The Singapore tax incentives are presently
scheduled to expire at various dates generally between 2018 and 2025, subject in certain cases to
potential extensions, which we may or may not be able to obtain. Absent such tax incentives, the
corporate income tax rate in Singapore that would otherwise apply to us would be 17%. We also have a
tax holiday on our qualifying Malaysian income, which is effective up to and including our fiscal year 2018.
The tax incentives that we have negotiated are also subject to our compliance with various operating and
other conditions. If we cannot, or elect not to, comply with the operating conditions included in any
particular tax incentive, we will lose the related tax benefits and we could be required to refund previously
realized material tax benefits. Depending on the incentive at issue, we could also be required to modify
our operational structure and tax strategy, which may not be as beneficial to us as the benefits provided
under the present tax concession arrangements. For fiscal years 2015, 2014 and 2013, the effect of all
these tax incentives was to reduce the overall provision for income taxes by approximately $207 million,
$99 million and $77 million, respectively.

Our interpretations and conclusions regarding the tax incentives are not binding on any taxing authority,
and if our assumptions about tax and other laws are incorrect or if these tax incentives are substantially
modified or rescinded we could suffer material adverse tax and other financial consequences, which
would increase our expenses, reduce our profitability and adversely affect our cash flows. In addition,
taxable income in any jurisdiction is dependent upon acceptance of our operational practices and
intercompany transfer pricing by local tax authorities as being on an arm’s length basis. Due to
inconsistencies in application of the arm’s length standard among taxing authorities, as well as lack of
adequate treaty-based protection, transfer pricing challenges by tax authorities could, if successful,
substantially increase our income tax expense.

Going forward, our effective tax rate will vary based on a variety of factors, including overall profitability,
the geographical mix of income before income taxes and the related tax rates in the jurisdictions where
we operate, as well as discrete events, such as settlements of future audits and acquisitions we may
make from time to time. In particular, we may owe significant taxes in jurisdictions outside Singapore
during periods when we are profitable in those jurisdictions even though we may be experiencing low
operating profit or operating losses on a consolidated basis, potentially resulting in significant tax liabilities

Broadcom Limited (formerly Avago Technologies Page 33


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Company View

on a consolidated basis during those periods. Our historical provision for income taxes is not necessarily
reflective of our future results of operations.

Broadcom Limited (formerly Avago Technologies Page 34


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Locations And Subsidiaries
Locations And Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office

Broadcom Limited (formerly Avago Technologies Limited)


1 Yishun Avenue 7
Singapore City 768923
SGP
Phone:65 6755 7888
http://www.broadcom.com

Other Locations and Subsidiaries

Avago Sales Office - Japan (Japan) Broadcom (Arizona)


Aobadai Hills 7F 5300 California Avenue
Aobadai 4-7-7 Irvine
Meguro-ku California 92617
Tokyo 153-0042 USA
JPN Phone:1 949 926 5000
Phone:81 03 6407 2727 Fax:1 949 926 9392
Fax:81 03 0120 61 1270
Broadcom (China) Broadcom (Georgia)
Broadcom China - Shanghai 600 Federal Street
Room 3006, United Plaza Andover
1468 W. Nanjing Road Massachusetts 01810-1064
200040 Shanghai USA
CHN Phone:1 781 860 0135
Phone:86 21 61560508
Fax:86 21 62892011
Broadcom (Korea) Broadcom India
14th Floor POSCO Center Ground Floor
West Wing 892 Campus A
Daechi-Dong RMZ Ecospace
Gangnam-Gu Bellandur
Seoul 135-777 IND
KOR Phone:91 80 4148 4210
Phone:82 2 2050 5400
Fax:82 2 2050 5450
Broadcom Limited - Co-Headquarters EBV Elektronik GmbH & Co.
1320 Ridder Park Drive Schonbrunner Str. 297 - 307
San Jose A-1200 Vienna
California 95131 AUT

Broadcom Limited (formerly Avago Technologies Page 35


Limited)
© MarketLine
Broadcom Limited (formerly Avago
Technologies Limited)
Locations And Subsidiaries

USA Phone:43 018 91 52 0


Phone:1 408 433 8000 Fax:43 018 91 52 30
Mouser - Industrial products
Delaware
USA
Phone:1 800 346 6873
Fax:1 817 804 3899

Broadcom Limited (formerly Avago Technologies Page 36


Limited)
© MarketLine
A Progressive Digital Media business

John Carpenter House, John Carpenter Street, London, United Kingdom, EC4Y 0AN
T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E: reachus@marketline.com | W: www.marketline.com
Copyright of Avago Technologies Limited MarketLine Company Profile is the property of
MarketLine, a Progressive Digital Media business and its content may not be copied or
emailed to multiple sites or posted to a listserv without the copyright holder's express written
permission. However, users may print, download, or email articles for individual use.

You might also like