IRVING, Calif. (AP) -- Broadcom Corp. said Monday that it is seeking strategic alternatives for its cellular baseband business, including a possible sale or wind down of the unit, to save on expensive research and development costs.

Broadcom's chips are used in smartphones, tablets and other devices. Its baseband unit makes chips that control communication functions in mobile devices.

After the announcement, the chipmaker's shares soared.

The Irving, Calif., company said it has hired JP Morgan explore any possible deals.

Getting rid of the baseband business will help the company save $700 million a year in research, development and other costs. It will use about $50 million of the money saved a year to invest in its infrastructure and connectivity businesses.