Broadcom wants to sell a radio frequency business unit in a deal that could yield as much as $10 billion, according to sources who spoke to the Wall Street Journal.
The company has already said it wants to reclassify its wireless business segments outside its core semiconductor business. The RF unit had $2.2 billion in revenue in its 2019 fiscal year. Credit Suisse is working with Broadcom to find a buyer, according to the report.
On an earnings call December 12, CEO Hock Tan called the wireless business units at Broadcom “standalone franchises.” The company has invested in two software companies recently, including CA in 2018 for $19 billion and Symantec for nearly $11 billion this year.
The RF unit reportedly up for sale makes film bulk acoustic resonators used in cell phones and base stations to filter out unwanted signals. A competitor, Qorvo, makes a different filter technology that can be used to replace resonators.
Broadcom also has other wireless units that supply products to smartphone makers such as Apple. One unit makes chips that combine Wi-Fi, Bluetooth and GPS. Another makes products that enable touchscreen technology and wireless charging. Those two units brought in more than $3 billion in the 2019 fiscal year, which brought in $22.5 billion overall.
Broadcom did not immediately respond to a request to comment.