Fine

President Donald Trump

Donald Trump

<div class="textg" style="text-align: justify;font-weight: lighter;line-height: 1.3em;font-size: 15px;border-radius: 3px;color: #80909a;padding: 10px;background-color: #F4F6F9;margin-bottom: 15px">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">Shares of Broadcom plunged 5.8% in premarket trading Thursday after South Korea’s antitrust regulator <a aria-label="imposed a $14.2 million fine (opens in a new tab)" href="https://www.deccanherald.com/business/companies/skoreas-antitrust-watchdog-fines-broadcom-for-unfair-supply-deal-to-samsung-electronics-2694893" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">imposed a $14.2 million fine</a>, citing the company’s unfair business practices against Samsung. Further, a separate report revealed that Alphabet’s Google was <a aria-label="considering dropping Broadcom (opens in a new tab)" href="https://money.usnews.com/investing/news/articles/2023-09-21/google-discussed-dropping-broadcom-as-ai-chips-supplier-the-information" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">considering dropping Broadcom</a> as its artificial intelligence (AI) chip supplier.&nbsp;</p> 
<h3 id="why-is-broadcom-s-stock-price-down">Why is Broadcom’s Stock Price Down?</h3> 
<p>South Korea’s antitrust regulator announced on Thursday that it will tentatively fine Broadcom and its affiliates 19.1 billion won ($14.2 million) after the company allegedly forced a long-term supply agreement one-sidedly disadvantageous to electronics giant Samsung. Moreover, the nation’s Fair Trade Commission (FTC) will issue a corrective order to the company.</p> 
<p>Meanwhile, Broadcom took another blow on the day after Google executives discussed dropping the semiconductor manufacturer as its supplier of <a href="https://tokenist.com/ai-firms-scramble-for-power-as-chip-demand-outpaces-supply/" rel="dofollow" class="deco-link">AI chips</a> as early as 2027. In that case, Google plans to develop the sophisticated chips in-house.</p> 
<p>The move comes after Google’s directors established a goal earlier in the year to dump Broadcom due to a standoff between the two companies over the price Broadcom was charging for the chips, also known as tensor processing units (TPUs). Furthermore, Google intends to roll out an improved networking chip under the code ‘Granite Redux,’ in collaboration with Marvell Technology.&nbsp;</p> 
<p>Broadcom’s <a href="https://tokenist.com/investing/how-to-buy-stocks/" rel="dofollow" class="deco-link">stock</a> fell 5.8% in the premarket on the two reports after closing down 1.66% at $830.57 on Wednesday.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="broadcom-controversy-and-regulatory-issues">Broadcom Controversy and Regulatory Issues</h3> 
<p>Founded in 1961, Broadcom is a global semiconductor and infrastructure software company headquartered in San Jose, California. The company designs and manufactures various semiconductor solutions for wired and wireless communication, data centers, and networking applications.</p> 
<p>Over the years, the chipmaker has faced controversy due to its aggressive acquisition strategy and alleged anti-competitive practices. In 2018, it was reported that the FTC had been investigating Broadcom for several months due to its anti-competitive tactics while holding customer talks.&nbsp;</p> 
<p>A year later, the European Union (EU) regulators ordered the company to stop its alleged monopolistic practices and forced it to agree to an antitrust complaint. The semiconductor maker was accused of abusing its power through restrictive contract terms and threats of retaliation against non-compliant customers.&nbsp;&nbsp;</p> 
<p>In addition, Broadcom was also involved in multiple high-profile takeover attempts, including its hostile bid for <a href="https://tokenist.com/qualcomm-shares-up-2-7-as-apple-extends-chip-deal-for-3-more-years/" rel="dofollow" class="deco-link">Apple’s chip supplier Qualcomm</a>. Former US President Donald Trump blocked the deal, citing national security concerns.&nbsp;</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><em><strong>Would Broadcom face significant pressure in the stock market if Google ditches the chipmaker? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/broadcom-shares-down-5-8-premarket-after-14-2m-fine/">Broadcom Shares Down 5.8% Premarket After $14.2M Fine</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Broadcom Shares Down 5.8% Premarket After $14.2M Fine

Table of Contents

Tokenist

Other articles published on Sep 21, 2023

Investing $100/week into Cardano in 2023 would be this worth today

PancakeSwap joins forces with Transak to streamline crypto onboarding

Dogecoin Price Prediction as Cryptos Consolidate…Buy DOGE NOW?

StakeCubeCoin Wallet Release 3.4.1.1: Mandatory Update Before Block 750000

Help Desk is closed from 28th September to 1st October

US presidential candidate Vivek Ramaswamy unveils crypto policy agenda

Join our free newsletter for daily crypto updates!