In a definite sign of the evolving market dynamics in China from a manufacturing base to a power house in design and development, leading semiconductor solutions provider Broadcom Corporation BRCM recently formed a strategic collaboration with three indigenous local manufacturing firms to augment its regional presence. The tactical move is also aimed at driving further innovation in its home entertainment and the digital home product category.
Broadcom formed a joint venture agreement with leading Chinese IT infrastructure products and solution provider H3C Technologies Co. Limited to explore market opportunities for its existing and future platforms in IT infrastructure. At the same time, the company joined forces with Shandong-based systems integrator Inspur Group and Beijing-based pay TV operator StarTimes.
With Inspur Group, Broadcom intends to provide an innovative digital home system through continued innovation in 4K Ultra HD set-top box offerings for China. On the other hand, the strategic tie-up with StarTimes is aimed to jointly develop low-cost set-top boxes by employing engineering resources and high-end Ultra HD home gateways.
Moving forward, Broadcom intends to work diligently to deliver healthy LTE (Long Term Evolution) revenues while focusing on data center innovation and next generation home video products with HEVC (High Efficiency Video Coding). With such initiatives, Broadcom continues to diversify into new markets such as Internet of Things, automotive, wearables and small cells. In the Internet of Things market, design activity remains high with its current products and the company is in the process of refreshing its portfolio with meaningful products that are optimized specifically for different market segments.
Based in Irvine, CA, Broadcom designs and markets semiconductor components for various applications. The company continues to drive innovation and engineering excellence across a broad range of communication end markets to help its customers enhance device performance and overall efficiency.
Broadcom currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look in the industry include Avago Technologies Limited AVGO, Advanced Micro Devices, Inc. AMD and FormFactor Inc. FORM, each carrying a Zacks Rank #2 (Buy).
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