Chip industry is having a very bad day. Intel is cutting a 1000 jobs, which is well a drop in the bucket for a company that is bloated and feels downright dowdy. Then 34 states are suing eight DRAM (memory commonly used in PCs) makers alleging price fixing.
Of the eight, Samsung is feeling heat of its own. Wall Street Journal reports that Samsung saw its second-quarter net profit fell 11%, and margins tighten on its chip business. And if that was no enough, Broadcom Corp., long viewed as the leader amongst mere mortals, got dragged into the options scandal. The company says it will record additional non-cash stock-based compensation expense of more than $750 million mostly because it is now correcting its books for past stock-option grants.
Ironic part is that the chip stocks are almost flat, just like the SOX, the chip index not the baseball team.