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Broadcom CEO Is Sacrificing Sales to Avoid a Future Crash

  • The chipmaker is tightly managing orders of in-demand chips
  • Broadcom is focused on supply ‘discipline,’ Tan says on call
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Photographer: Patrick T. Fallon/Bloomberg
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When Broadcom Inc. reported slower sales growth than some of its peers on Thursday, Chief Executive Officer Hock Tan gave a surprising reason: It was on purpose. 

Even with demand for its chips surging, the company is tightly controlling which orders it fills, he said on a conference call Thursday following Broadcom’s third-quarter report. The idea is to sacrifice some current sales to avoid creating a glut in the future.