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Inari Amertron falls after report that Apple plans to drop broadcom chip

Shares of Inari Amertron Bhd. fell as much as 8.9% in early trade following a report that Apple Inc. plans to cease using some parts from major chip suppliers, including Broadcom Inc., by 2025. Shares of the Malaysia’s leading outsourced semiconductor assembly and test provider 0166, -5.71% dropped to 2.57 ringgit (59 U.S. cents) on

inari-amertron-falls-after-report-that-apple-plans-to-drop-broadcom-chip

Shares of Inari Amertron Bhd. fell as much as 8.9% in early trade following a report that Apple Inc. plans to cease using some parts from major chip suppliers, including Broadcom Inc., by 2025.

Shares of the Malaysia’s leading outsourced semiconductor assembly and test provider 0166, -5.71% dropped to 2.57 ringgit (59 U.S. cents) on Tuesday, bringing their loss over the last 12 months to 34%. Inari is part of Apple’s AAPL, +0.41% supply chain as Broadcom AVGO, -1.96% is a major customer.

Bloomberg News reported late Monday that Apple, as part of its effort to develop its own chips, plans to stop using a Broadcom part in 2025. It also plans to release its own modem chip by the end of 2024 or early 2025, letting it swap out electronics from Qualcomm.

Shares of Broadcom, one of Inari’s major clients, reversed early gains to close Monday 2.0% lower in the U.S. following the report, while Qualcomm shed 0.6%.

Broadcom outsources semiconductor assembly and test services for its chips to Inari.

Write to Ying Xian Wong at yingxian.wong@wsj.com

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