Benzinga | Feb 22, 2021 09:26AM EST

Silicon Labs Explores Analog Business Divestment To Focus On IoT: Bloomberg

* Silicon Laboratories Inc (NASDAQ: SLAB) is contemplating the divestment of its analog chip business for $2 billion to $3 billion, to focus on the internet of things or device connectivity chips constituting 60% of the revenue, Bloomberg reports.

* The silicon, software, and solutions provider is working on the divestment with an adviser, which could attract interest from other semiconductor companies. However, no final decision has been made regarding the divestment.

* Bloomberg notes that makers of smart-home gear, industrial automation, vehicles, and data center equipment use Silicon Labs's chips.

* SLAB is still a small chipmaker that has not clocked $1 billion in annual revenue.

* The share prices have gained over 45% in the last quarter.

* Price action: SLAB shares closed up 10.43% at $162.84 on Friday.