Several uncertainties cloud the outlook for Orange County’s tech scene in the new year.
Chief among them are the future of two of the most influential companies in Irvine: soon-to-be sold chipmaker Broadcom Corp.—which will be acquired by Singapore-based Avago Technologies Ltd.— and storage products maker Western Digital Corp.—which recently gained approval from regulators in China to integrate its $4.8 billion buy of HGST Inc. in San Jose.
Both companies have committed to a continued presence here but have sizeable operations in that Silicon Valley stronghold that are becoming increasingly important to future operations.
The local sector has at least one initial public offering slated for next year: Irvine consumer electronics brand Vizio Inc. has already filed registration statements with the Securities and Exchange Commission to raise up to $172.5 million in a public offering.
A few more developments to keep an eye on: the evolution of virtual reality and Laguna Beach startup and VR content maker NextVR Inc.; the rebirth of what was known as Fisker Automotive—it recently changed its name to Karma Automotive—under new ownership; the growth of data analytics and key players, such as Irvine-based Alteryx Inc.; and ongoing consolidation that has cleared the deck of many midtier players.
Company to Watch Broadcom
Broadcom will start 2016 as something other than an OC-based company for the first time since it moved here from Los Angeles in 1995. The chipmaker will cede the headquarters designation to $37 billion buyer Avago, whose U.S. digs are in San Jose.
The chipmaker, launched in 1991 with Samueli in a spare bedroom of Henry Nicholas’ Redondo Beach home, is doing some addition and subtraction.
The company has begun construction on a five-building campus next to Orange County Great Park that calls for 1.1 million square feet in its first phase, though some of its local employees likely will never work there.
Industry sources anticipate the company to announce significant job cuts in the coming weeks in a hallmark of Avago’s post-acquisition strategy.
Its name will live on, as the combined entity will be called Broadcom Ltd., with most of its engineers expected to keep their jobs. The executive ranks will be thinned, while administrators and other corporate personnel—human resources, legal, marketing and sales—will likely be cut.
Person to Watch Henry Samueli
We decided to double dip, since Broadcom is arguably OC’s most successful tech story, choosing to keep a close eye on Henry Samueli, who has many other professional and personal aspects of his life that are tied to this market.
The Broadcom co-founder and chairman will take on the role of chief technology officer of the combined company and join the board. Samueli, who will own about 7% of the new entity, has been largely mum on the deal and his future role.
It appears he will remain in Irvine, where he played a key role in acquiring land at Orange County Great Park and laying out the vision for the new campus there. Whether he takes a more active role in local philanthropic efforts or as the owner of the Anaheim Ducks remains to be seen. The Ducks are last in the Western Conference, falling short in three straight years in deciding Game 7s. The club remains nearly $5 million under the salary cap.
