Factory Moves on Tariffs Cut Broadcast, Other Orders, Says Silicon Labs; Stock Falls

John Hollister on a call. IoT, infrastructure, broadcast and access are projected to be lower. CEO Tyson Tuttle attributed shortfalls to the macro environment and “not to share loss,” citing China’s “difficult environment” due to a slowdown in gross domestic product and factory activity as customers move production elsewhere on tariff concerns. Economic conditions are “decelerating in major markets,” leading to a semiconductor industry “down cycle,” Tuttle said. Noting it has been a decade since the last “macro correction,” Hollister said: “The question is, is this one going to be short-lived with a quick rebound, or is it going to be more protracted?” Some of that will be determined by the U.S.-China relationship and "Huawei, ZTE, in terms of the tariffs,” he said. Tuttle called geopolitical and trade factors “much more turbulent now." Wireless products now comprise more than 60 percent of total IoT revenue. Weakest sequential revenue performance was in the Americas, led by declines in wireless and other businesses.