TECHNOLOGY SECTOR NEWS: LIM & TAN SECURITIES Broadcom, a key customer of STATS Chippac which has declined 21% this year fell another 3% in after hours after its 4Q’13 outlook missed expectations and said that it will cut 1,150 jobs as its 2 key customers Apple and Samsung’s demand came in below expectations. The weaker than expected demand for smartphones also hit other chip stocks such as ST Microelectronics, Qualcomm and Texas Instruments. Due to the numerous downgrades from bell-weather semiconductor companies, the chip sector was the biggest decliner (-2.5%) amongst the S&P 500 sectors. Hi-P and STATS Chippac, 2 local companies which have exposure to this sector will likely be negatively impacted as a result.
Posted on: Thu, 24 Oct 2013 01:07:02 +0000