(19 December 2019)DAILY MARKET BRIEF 1:Broadcom Seeks Buyer for Wireless-Chip Unit

Broadcom Inc. is looking to sell one of its wireless-chip units, a move that would accelerate the company's shift away from its roots as a semiconductor maker. Broadcom is working with Credit Suisse Group AG to find a buyer for its radio-frequency, or RF, unit, a segment of its wireless-chip business that makes filters used in cellphones to clarify signals, according to people familiar with the matter. The unit had $2.2 billion in revenue in Broadcom's 2019 fiscal year and is one of the original businesses of predecessor company Avago. It could be worth $10 billion, some of the people said, but it isn't clear if that's achievable and there may not be a deal. The process is at an early stage, the people said. Broadcom obliquely referred to the move when it reported results last week, saying it was reclassifying its wireless units as outside its core semiconductor business. On a conference call to discuss results, Broadcom Chief Executive Hock Tan called the wireless businesses "stand-alone franchises" that don't fully mesh with the company's other operations.

By Vincent Mivelaz