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Broadcom wants to sell its RF chip division; could buy it Apple

Broadcom wants to sell one of its divisions dedicated to the production of wireless chips – specifically those related to RF, according to what is reported on Wall Street Journal. And Apple could be among potential buyers. The multinational, which has been talked about a lot in recent months for its attempt to buy Qualcomm (even if it was wrecked in the middle of the China-US trade war), would be trying to diversify its activities, steering towards software which offers wider profit margins.

RF chips are used in smartphones and base stations like filters to reduce / remove radio interference, making the cellular signal cleaner and more stable. According to the source, the RF division alone raised $ 2.2 billion over the whole of 2019 to Broadcom. Based on this figure, it is estimated that the sale price could be around 10 billion. However, in the last period an alternative, developed by Qorvo, which is smaller and more reliable, is entering the market.

Apple already has business relationships with Broadcom – in fact the Cupertino company is responsible for as much as a quarter of all Broadcom's turnover for all of 2018. The WSJ report does not specifically mention Apple, nor other potential buyers; also because the sales process has just begun, and it is still too early. However, Apple has already evaluated the possibilities of creating its own RF chip division in the past, so it is quite obvious that Broadcom's proposal is tempting.