The Wall Street Journal reported on Wednesday that Broadcom intends to sell the RF business of one of its wireless chip divisions, a move that will accelerate the company's fundamental transformation from a semiconductor manufacturer.

The division generated $ 2.2 billion in Broadcom's 2019 fiscal year and was one of the original businesses of its predecessor company, Avago. According to people familiar with the matter, the department is said to be worth $ 10 billion. Broadcom is currently working with Credit Suisse on the sale, but it is unclear whether this can be achieved and an agreement may not be reached. It is still in its early stages.

Broadcom's RF unit manufactures filters for smartphones to clarify signals. Its technology is the "market leader" in the industry, but faces newfound competition: the RF unit is the market leader of the so-called FBAR (thin film bulk acoustic resonator), which is used in mobile phones and base stations to filter out Required radio transmission. But in recent years, it has faced increasingly fierce competition. Rival Qorvo Inc. has developed another filtration technology that is slim and reliable and can replace traditional FBAR.

Apple is Broadcom's main customer, accounting for about 25% of its 2018 net income. However, Broadcom hopes to better diversify itself by focusing on its more profitable software business.

The article media mentions any potential acquirer of Broadcom ’s RF business, but Creative Strategies analyst Ben Bajarin pointed out that Apple is already researching its own RF technology and may be a “candidate” for acquiring Broadcom ’s business.

Broadcom mentioned this move last week when it announced its results, saying it would reclassify the wireless business as a business other than its core semiconductor business. In fiscal 2019, Broadcom achieved revenue of US $ 225.97, an increase of 8% year-on-year, and a net profit of US $ 2.724 billion. Broadcom has not responded to the report.