Broadcom
How Broadcom quietly acquired its way into becoming the most important semiconductor company most people have never heard of.
Hawk-tan arrived in 2006. The company that would become Broadcom in 2016, observing divisions operating like separate companies, each had its own engineering, management and R&D. Divisions competed for resources. Capital flowed to executives who argued loudest. Tan saw waste, bought Infineon's wireless division at below market rate and gutted the R&D team. The economic seemed destructive. A wireless chip maker needs continuous innovation, right? Tan knew standards updated every three to four years. New entrants mattered less than retaining customers. Minimum R&D kept products good enough. Customers stayed, prices rose. Operating margins climbed to 42%, while competitors sat at 14 to 18%.
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