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Broadcom seeking exit from cellular baseband business

News by Andrew Kameka on Monday June 02, 2014.

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Broadcom is the latest company to consider exiting the cellular baseband business. The company announced today that it is exploring a potential sale or gradual close down of its activities related to building cellular radios for smartphones. Broadcom is one of many companies involved in baseband, but with increasing pressure from dominant players like Qualcomm, low-cost competitors, and more companies exploring developing their own chipsets, an exit may be seen as the best course of action to Broadcom.

Similar challenges inspired Texas Instruments to abandon the mobile industry to focus on embedded solutions, and Nvidia has decided to focus on graphics and super high-end products. Broadcom says it is exploring new alternatives with advisers from JP Morgan. A sale or closure of its baseband business would save Broadcom $600 million in research, development, and staffing costs.

source: Broadcom

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Andrew Kameka
Andrew is based in Miami, Florida.

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