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1. Alton D. Delane
alton.delane@gmail.com
973.307.5589
Investing in tomorrow today
Semiconductor Industry

2. Chasing Moore’s Law, and beyond
Semiconductor industry pain points
• US semiconductor industry ranks among the most investment intensive
of all industries, R&D ~ 20% of revenues, annually
• US government funding for R&D at historic lows as a % of the economy
• R&D investment shifting East overall, particularly in China
• Emerging technologies such as artificial intelligence, virtual reality,
autonomous vehicles, and the Internet of Things require innovation
beyond just scale and cost improvements
• Market competition driving increased focus on short–range product
development, reduced long-range research

3. Semiconductor Industry Landscape
Federal
Government
Research time
horizon
New
technologies
Semiconductor
Industry
University
Research
The intersection of industry, government and university research

4. Competitive, global marketplace

5. Heavy R&D expenditure

6. Broadcom at a glance*
Headquarters - San Jose, CA
Revenues - US $20.9B
R&D expenditures - US $3.8B
Global workforce - 16,500, including 8,300 across 35 states
Wired infrastructure
• Set-top box access
• Broadband access
• Data center networking
Wireless communications
• Mobile handsets
• Wi-Fi and Bluetooth SoC
• Touch controllers
Enterprise storage
• Servers and storage
systems
• HDD and SDD
Industrial & other
• Power isolation
• Power conversion
• Motor controls
Major product segments
(42%) (31%) (22%) (5%)
*FY 2018

7. Potential reservations…
• Track record of driving fiscal returns via M&A and short-term R&D
activity much to the delight of Wall Street but with the long-term risk of
potentially missing out on breakthrough R&D
• Recent expansion into infrastructure software market with purchase of
CA Technologies could distract management’s long-term strategic vision

8. Eliminate FOMO
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