Broadcom is working with Credit Suisse to find a buyer for its radio-frequency unit, a segment of its wireless-chip business that makes filters used in mobile phones to clarify signals, people familiar with the matter told the Wall Street Journal. The unit had USD 2.2 billion in revenue in Broadcom’s 2019 fiscal year and is one of the original businesses of predecessor company Avago.
The sale could be worth USD 10 billion, some sources told the paper. However, it isn’t clear if that’s achievable and there may not be a deal. The process is at an early stage, according to the report.
Broadcom obliquely referred to the move when it reported results a week ago, saying it was reclassifying its wireless units as outside its core semiconductor business. CEO Hock Tan called the wireless businesses “stand-alone franchises” that don’t fully mesh with the company’s other operations.
The RF unit is a market leader in so-called FBARs—film bulk acoustic resonators—that are used in phones and base stations to filter out unwanted radio transmissions. In recent years it has faced increased competition from rivals such as Qorvo.
