Broadcom shares jumped more than 5% ($1.83) last Monday after the broadband chipmaker said it would expand its system-on-a-chip (SoC) research and development center in Taiwan.
Broadcom said it would expand the center, based in Hsinchu, and triple the number of researchers at the facility from 40 to 125 over the next three years.
The Broadcom SoC Design Center focuses on Broadcom's networking and multimedia gateway technology and products.
SoC technology is the latest wave in semiconductor research, a more efficient method of chip making that replaces large numbers of microprocessors with a single, vastly larger chip.
To investors accustomed to news of chip plants and R&D facilities closing, the news was a welcome change. The stock rose as high as $36.06 in trading Nov. 24, before closing at $35.93. Broadcom has been on a tear this year – the stock hit a new 52-week high Nov. 13 ($37.65) and has more than doubled since the beginning of the year. Still, Broadcom shares are well below their historical highs of three years ago, when the stock topped $246 during the Internet boom.