Broadcom Corp. (BRCM) stands out as one of the biggest beneficiaries from orders from Apple Inc. (AAPL), whose need for parts that go into iPhones and iPads represents a bright spot for a semiconductor industry plagued by weak demand.
Taiwan Semiconductor Manufacturing Co., Broadcom’s biggest supplier, last week said third-quarter sales would exceed earlier forecasts because of rush orders from an unnamed customer. Other large Taiwan Semiconductor clients have disclosed disappointing results, suggesting that the customer was probably Broadcom, rushing to meet demand from Apple, according to a supply-chain analysis by Bloomberg.
Apple is expected to announce a new iPhone by the end of October and will expand its availability in the U.S. to include Sprint Nextel Corp., people familiar with the matter said last week. The company also is expanding in China, where sales grew sixfold last quarter and new retail stores are planned.
Broadcom rose 55 cents to $34.77 in Nasdaq Stock Market trading yesterday. The company, whose stock has dropped 20 percent this year, may be spared from the struggles of other chipmakers because of Apple.