Thomas Alsop
Research expert covering the global hardware industry
Broadcom - statistics & facts
Broadcom, an industry leader in the semiconductor ecosystem, made headlines following the acquisition of VMware in November 2023. The deal, valued at 69 billion U.S. dollars, serves as an addition to the company’s extensive product portfolio spanning the broadband, data center, software, and storage markets. Ranking as the fourth-biggest semiconductor company in the world in 2023, Broadcom’s semiconductor and infrastructure software solutions helped the company achieve yet another year of growth. The company’s success in 2023 was driven in part by demand from cloud service providers for accelerators and networking connectivity for artificial intelligence (AI) applications.
Broadcom is a leading fabless semiconductor company
With total revenues reaching 35.8 billion U.S. dollars in 2023, Broadcom was able to maintain its position among the leading semiconductor companies in the world. While the company lies behind market leaders Intel and Samsung, Broadcom sits comfortably among other fabless semiconductor companies such as Qualcomm and Nvidia. As a fabless semiconductor company, Broadcom does not own any chip manufacturing facilities, instead focusing on chip design for several end markets. As a result of its broad product offering, the company faces stiff competition from Micron and Samsung for memory and storage solutions, as well as the likes of Cisco and Palo Alto Networks for networking and security products.Broadcom’s completes the acquisition of VMware following approval by regulators
Broadcom was finally able to close its acquisition of VMware after being approved by regulators in China. The deal was held up by officials who raised concerns about potential competition impacts. Through its acquisition of VMware, Broadcom now benefits from owning one of the world’s leading enterprise software companies. The VMware business specializes in cloud computing and virtualization technology and was previously owned by Dell before being spun off where it stood as a standalone company until the Broadcom acquisition. With the contribution of VMware, along with continued semiconductor demand, Broadcom anticipates revenue in 2024 to reach approximately 50 billion U.S. dollars.Broadcom poised for strong growth
With the mass integration of AI across multiple industries, Broadcom’s networking technologies help to facilitate communication between multiple AI chips, particularly products that can deliver the high-capacity and quick response times which are essential for generative AI applications. The combination of this, its core semiconductor business, with the strategic benefits of the VMware acquisition, means Broadcom is well-positioned for strong growth in 2024.
