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IRVINE, CA — Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has completed the acquisition of Gigle Networks Inc., a privately-held company that develops system-on-a-chip (SoC) solutions for home networking over power lines.
In connection with the acquisition, Broadcom paid approximately $75 million to acquire all of the outstanding shares of capital stock and other rights of Gigle Networks Inc. The purchase price was paid in cash, except that holders of unvested employee stock options will receive Broadcom equity awards. A portion of the cash consideration payable to the stockholders was placed into escrow. Additional consideration was reserved for future payment upon satisfaction of certain performance goals. Excluding any purchase accounting related adjustments or fair value measurements, Broadcom expects the acquisition of Gigle Networks Inc. to be dilutive by approximately $0.01 per share in 2011.
I agree 100 percent Bolaji that China is the economic powerhouse in tech and in most other areas. I think the West is going to continue to have problems accepting that fact because the rules of capitalism are part of our DNA. In China, it's not the market that dictates price, enables competition and sets the ground rules for the winners and losers. It's the government. Whether it's right or wrong, the fact is the rules are different there.
One could argue that the US government has played too big a role in our economic future with bailouts (GM) and loans (TARP) and even healthcare reform. I see it more as enablement (most of the loans are being paid back and GM is turning a profit) versus control. I've got mixed feelings on this. But the situation is what it is and the West has to figure out how to deal with it or we will continue to beating our heads against the Great Wall.
While I agree with your assessment, I must say that I found the article quite disheartening. The question remains: Will US OEMs continue to do nothing?? Where is the future of our county if we continue sending hi tech jobs to the Far East? Maybe the US government needs to step in and start offering the incentives needed for these OEMs to keep/generate jobs in the US. It may not solve the problem in the short term but it may make the long term a little less gloomy.
We also should analyze whey people in China are more affluent and able to spend more than people here in the US. I believe this is a product of our own doing. We send the jobs there, therefore, people there have more money to spend.
There is bubbles everywhere in China but it's not going explode any time soon, maybe will never happen since the central government has tons of cash to play with it. There are at least 2 billion of people living below poverty and it means demand from them in the future can provide more growth. Other than the few major metropolitan cities, infrastructure is still lacking in the rest. All those tell us the west will keep doing same thing for a foreseable future to please them for the martket share 'cause the fat meat just getting fatter day by day.
Eemom, Don't be disheartened. My follow up report is going to have a positive take on why manufacturing can thrive in the West. There are institutions in the West now taking a deeper look into how the West can be competitive in manufacturing. One such organ is located at MIT, which recently set it up to examine how the US can be competitive in manufacturing. By the way, Susan Burger, the MIT professor who is chair of the panel, cited several European countries that have a higher level of manufacturing than the U.S.
ok, I feel a little bit better but I still think that OEMs are trying to be aggressive in cutting costs and until there is an incentive for them to stay in the West, the future is a bit grim.
Well, I am pretty known and used before many products category from different parts of world such as China, Japan, US, Europe, Taiwan etc… Each has its strong and weak points.
Nevertherless, it cannot be denied especially a lot of people not only from the Western but also other parts of world are focusing on China is getting growing up fast and vast that they are buying their own products rather the outside world products. It is really a unbalanced economy trench that other parts of the world money is pouring in for the case of investments and products sold to outside world, created a scenario that China is most of the time money flow in but very less money flow out.
In actual, the products made in China, for my personal experince, it is of lower quality and less reliable. Even it is of foreign OEM or ODM made in China, it is of any how is a lower grade ones. Definitely those China own design ones are even worst cases, but China products gain market base on nobody made products penetrate into your country that products do not made in your own country that make interest to for you try it because it is of excellent features and functions but of low quality and poor reliability and you like to try it, this is the problem.
Cannot deny that Asia is the largest population in the world that when the cost of living becomes higher means it is an enormous market for the western products to sell in Asia. Of course provided western products are still competitive in quality and at reasonable pricing or it is a superior technology products from Intel, IBM, Apples and Microsoft etc…. I can see there are a lot of products from Germany, Japan, Korea, Taiwan, Switzerland selling pretty well in Asia, why not others Western makers survey on these companies' policy and strategy and its product nature ?
We all know that China is the worlds most populous country and in being so they also have the fastest growing market and economy in the world. There are still drawbacks to this 1 – the government has a large control of how the economy and how resources are imported and exported in China. Even though more people in China are gaining a larger income their annual income is still well below living comfortably. Chinas population still has more have nots than people with expendable income. Take for instance Harley Davidson, recently they ventured into the Chinese market. The cheapest motorcycle they are selling over there is still retailing for $9000.00 USD. For the majority of the population this is 4 to 5 times their yearly income and they are taking a large risk trying to expand into this market.
As for the quality of goods manufactured and sold in China not being of a high quality, think about this. In today’s global society we live in a throw away market. Electronics i.e. cell phones, televisions, even computers are have all become so cheap that we expect their life span to be 2-5 years and if something goes wrong it is cheaper for us to throw them away then pay someone to repair it.
So as an expanding economy many Chinese that are finally able to buy some of these items are more concerned with having them than with the longevity of them.