- Piper's Gus Richard says checks indicate foundries have cut production of Broadcom's (BRCM -2.4%) chips, something he attributes in part to weaker-than-expected Galaxy S4 demand, share losses to Qualcomm (QCOM -2%), and a mix shift towards low-end Chinese smartphones (where Broadcom's combo chip share is lower).
- He also sees Qualcomm being affected by S4 weakness, and thinks its royalty growth will slow as smartphone ASPs are pressured by a shift towards emerging markets sales. Qualcomm recorded a $227-$233 March quarter ASP for royalty-bearing devices, up from $214-$220 in the Dec. quarter.
- TSMC (TSM -1.2%), the top foundry partner for both Broadcom and Qualcomm, is also lower. The company just announced R&D chief Chian Shang-yi, who had been on a shortlist of candidates to replace Morris Chang as CEO, is retiring on Oct. 31.
- Chiang, 82, has said he will retire as CEO next year, but remain chairman.