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Broadcom: From HP Division to $1 Trillion Giant
3 Jan
Summary
- Broadcom's origins trace back to Hewlett Packard's 1961 semiconductor division.
- The company evolved through Avago Technologies before acquiring Broadcom Corp.
- Controversy surrounds VMware acquisition, yet AI drives recent financial gains.
The modern tech giant Broadcom traces its lineage to Hewlett Packard's semiconductor product division, HP Associates, founded in 1961. This segment underwent significant transformations, including a spin-off into Agilent Technologies in 1999 and an acquisition by KKR and Silver Lake Partners, rebranding as Avago Technologies in 2005 for $2.6 billion.
Following its public debut on NASDAQ in August 2009, Avago pursued aggressive acquisitions, expanding into lucrative markets. A pivotal moment occurred in 2016 with the $37 billion acquisition of Broadcom Corporation, a fabless semiconductor company, leading to the merged entity adopting the Broadcom name and instantly creating an industry leader.
Broadcom has since solidified its position, but faced recent controversy after acquiring VMware. The company's overhaul of practices, including eliminating perpetual licenses and altering partner programs, has drawn customer criticism. However, these changes, coupled with a robust AI strategy, have driven strong financial performance, evidenced by a 22% revenue increase in Q3 FY2025.
