Hock E. Tan
President and Chief Executive Officer at Broadcom
Thank you, Ji, and thank you, everyone, for joining us today. In our fiscal '20 -- in our fiscal Q1 '23, consolidated net revenue, that was -- revenue was $8.9 billion, up 16% year-on-year. Semiconductor Solutions revenue increased 21% year-on-year to $7.1 billion, while as we expected, Infrastructure Software declined 1% year-on-year to $1.8 billion even as our core software sustained growth of 5% year-on-year.
Stepping back, let me sum up what happened in Q1. From our view, infrastructure spending continues to be up, particularly in service providers even as hyperscale and enterprise sustain. Spending in technology for infrastructure has been strong, showing double-digit growth for nine consecutive quarters. We continue to be booked for fiscal '23 and our lead times and visibility on semiconductors remain largely at 50 weeks. While there have been a small number of request to push out certain orders, we know that these are the exceptions and they have not had a material impact on our business.
Because we ship linearly throughout the quarter to our customers, inventory on our books has been consistent around 80 days, and the overall inventory of Broadcom products across the ecosystem remains very well-managed. We continue, needless to say, to be very disciplined in shipping of backlog only as and when needed by our end customers.
With that, let me now provide more color on each of our end markets, starting with networking. Networking revenue was $2.3 billion and was up 20% year-on-year, in line with guidance, representing 32% of our semiconductor revenue. We see continued deployment of our advanced Tomahawk switches by hyperscalers in their leaf and spine architectures. Even as we deliver on increased bandwidth for the hyperscalers, having said that, power remains a major challenge. So just this week, we announced the industry's first integrated silicon photonics networking solution, codenamed Bailly, which integrates the active optical interconnect with our next generation Tomahawk 5 switch at 51.2 terabit per second. Bailly doubles switching performance, but it will reduce total system power.
Keep in mind that as hyperscalers, a growing portion of our switches are being deployed within their AI networks which aren't separate from the traditional x86 CPU scale-out running existing workloads. Now, this is today. Tomorrow, with generative AI using large-scale language such as AI models with billions of parameters, we have to run thousands of AI engines in parallel, enabling large and synchronized burst of data at speeds of 400 and 800 gig. Demand works to support this massive processor density is critical, and as important as the AI engines. Such networks have to be lossless, low latency, and be able to scale. So as you know, so such AI networks are already been deployed at certain hyperscalers through our Jericho 2 switches and Ramon fabri.
In fact, in 2022, we estimated our Ethernet switch shipments deployed in AI was over $200 million. With the expected exponential demand from our hyperscale customers, we forecast that this could grow to well over $800 million in 2023. We anticipate this trend will continue to accelerate and mindful that we need even more higher-performance networks in the future, we have been investing in a new generation of this lossless, low-latency Ethernet fabri designed specifically to handle such data and compute-intensive AI workloads.
Of course, additionally, the exciting growth prospects for generative AI are driving our compute offload accelerated business and hyperscalers. As we have indicated to you last quarter, this business achieve over $2 billion in revenue in 2022. We are on track to exceed $3 billion in revenue in our fiscal '23. In Q2, looking forward short-term, we expect these tailwinds to drive our networking revenues to grow about another 20% year-over-year.
Moving on next to our server storage connectivity revenue. That was a record $1.3 billion or 18% of semiconductor revenue, and up 57% year-on-year. Once again, as we discussed in preceding quarters, the rapid transition to next generation MegaRAID solutions drove the substantial year-on-year content increase. After four consecutive quarters of such increases, this transition, however, is significantly complete and we expect that in Q2 on a year-on-year basis, server storage connectivity revenue will moderate towards 20% year-on-year growth.
Moving on to broadband. Revenue grew 34% year-on-year to a record $1.2 billion and represented 17% of semiconductor revenue. During this quarter, our broadband business particularly benefited from robust deployments of -- by telcos of 10G PON and cable operators of DOCSIS 3.1. These gateways have high attach rates of Wi-Fi 6 and 6E. And in Q2, we expect the secular drivers behind broadband to sustain momentum on a sequential basis and year-on-year, broadband will grow a solid 10%.
Moving onto wireless. Q1 revenue of $2.1 billion represented 29% of semiconductor revenue. Demand from our North American customer drove wireless revenue up 4% year-on-year, reflecting content increases, which we had previously indicated last quarter. Sequentially, wireless was flattish compared to Q4 and seasonally, we expect wireless to be down sequentially in Q2 and down high-single digit percentage year-on-year.
Finally, Q1 industrial resale of $229 million decreased 4% year-over-year as softness in China offset strength in renewable energy and medical. And in Q2, we forecast industrial resales to be down low-single digit percentage year-on-year on continuing softness in China. So in summary, Q1 Semiconductor Solutions revenue was up 21% year-on-year and in Q2, we expect semiconductor revenue growth of high-single digit percentage year-on-year.
Turning to software. In Q1, Infrastructure Software revenue was $1.8 billion declined 1% year-on-year and represented 20% of total revenue. While core software revenue grew 5% year-on-year, the Brocade business declined because of lumpiness in enterprise consumption in this very narrow vertical of same storage.
For core software, consolidated renewal rates average 119% over expiring contracts and within our strategic accounts, we average 129% and within this strategic accounts, annualized bookings of $536 million included $197 million, which represent 37% of cross-selling of our portfolio products to the same core strategic customers. Over 90% of the renewal value represented recurring subscription and maintenance.
Now, by way of comparison, over the last 12 months, consolidated renewal rates average 119% over expiring contracts and in our strategic accounts, we average 134%. Because of these, our ARR, the indicator of forward revenue at the end of Q1 was $5.3 billion, which is up 3% from a year ago. In Q2, we expect our Infrastructure Software segment revenue to be up low-to-mid single digit percentage year-on-year as the stable core software growth continues to be partially offset now by weakness in Brocades.
So in summary, we are guiding consolidated Q2 revenue for the company to be $8.7 billion, up 8% year-on-year. Before Kirsten tells you more about our financial performance for the quarter, let me provide a brief update on our pending acquisitions of VMware. We continue to make progress with our various regulatory filings around the world, having now received legal merger clearance in Brazil, South Africa and Canada and foreign investment control clearance in Germany, France, Austria, Denmark, Italy and New Zealand. As we stated on our last earnings call, we continue to anticipate that the timeline for the review process will be extended in other key regions, especially given the size of this transaction. Having said that, we continue to expect the transaction to close within our fiscal 2023. We believe the combination of Broadcom and VMware is about enabling enterprises to accelerate innovation and expand choice by addressing the most complex technology challenges in this multi-cloud era. And we are confident regulators will see this when they conclude their review.
Finally, Broadcom recently publish its third annual ESG report available on our corporate citizenship website, which discusses the company's ESG initiatives. As a global technology leader, we recognize Broadcom's responsibility to have a positive impact on our customers, employees and communities. Through our product and technology innovation and operational excellence, we remain committed to this mission.
With that, let me turn the call over to Kirsten.