Broadcom will soon be leaving the cellular baseband business

Broadcom has announced it is looking for an exit from the baseband chip market. The company released a statement saying that they are “exploring strategic alternatives for its cellular baseband business, including a potential sale of wind-down.” Leaving the baseband business could mean a large cost savings for the company, as well as moving out of a market dominated by Qualcomm. Broadcom estimates that it could see a reduction of $700 million spent on research, development, selling and other administrative costs related to its baseband business if it sells or shuts down the wing. Of that amount, $100 million will related “to estimated reductions in stock-based compensation.”.