Qualcomm, which reported a quarterly profit of $341 million [M] this week, said demand for its products is falling, with sales expected to fall up to 14 percent compared to the same period last year. Broadcom, which suffered a loss of $159 million during the fourth quarter, also expects sales to fall.

"As we look into the first quarter of 2009, we believe the current economic slowdown will continue to negatively impact our business as demand continues to decrease and settle into new levels and channel inventory adjusts accordingly," Broadcom CEO Scott McGregor said in a released Thursday.