Broadcom Plans to Leave the Baseband Business

Posted by at 11:16 am on June 2, 2014

Broadcom today indicated that it is looking to exit the cellular baseband radio-making business. The company is exploring strategic alternatives, including a potential sale or wind-down of its baseband business unit.

The company has signed JP Morgan to help it divest the unit. Broadcom said if it is able to successfully sell or wind down the baseband unit, it can save $700 million annually in research, development, and other costs. Broadcom would like to reinvest these savings into its remaining businesses, including small cells, embedded processing, and low-power connectivity.

Broadcom didn’t provide a timeframe for exiting the baseband business. Broadcom is facing pressure from competitors such as Qualcomm, which excels at integrating 4G baseband radios with application processors.

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