Analog and mixed-signal chipmaker Skyworks is merging with radio frequency (RF) and internet of things (IoT) chipmaker Qorvo to create a $22 billion U.S.-based RF semiconductor titan.
According to the companies, each vendor has complementary portfolios, and the combined company will strengthen the growing demand for mobile and diversified markets that need RF products.
“Together with Skyworks, we can accelerate innovation and deliver broader and more comprehensive solutions across numerous growth areas,” said Bob Bruggeworth, CEO and president at Qorvo. “We are excited to leverage the combined strengths of our teams and product and technology portfolios to build on our capabilities in Mobile and significantly expand our presence in defense and aerospace, edge IoT, AI data center, automotive and other industries powered by secular growth trends.”
No official name for the new company has been announced.
Why they did it
According to the companies, the combined company will be better positioned to compete against larger players in the market as well as create new RF, analog and power devices to provide customers with highly integrated, complete solutions.
The combined company will include about 8,000 engineers and technical staff as well as 12,000 issued and pending patents.
The combined company will create a $5.1 billion mobile business, bringing together both RF technologies and best-in-class products. The larger portfolio will help the new company’s competitiveness across multiple sectors, the companies said.
An additional $2.6 billion diversified broad markets platform will be established across markets like:
- Defense and aerospace
- Edge IoT
- AI data center
- Automotive
The new company will also increase its domestic production capacity and enhance its capital efficiency with supply chain partners for high volume and highly specialized users.
The deal
Under the merger, Qorvo shareholders will receive $32.50 in cash and 0.960 of Skyworks common share for each Qorvo share held. This is an estimated value of $22 billion, the companies said.
After regulatory approvals, Skyworks shareholders will own about 63% of the combined company and Qorvo shareholders will hold about 37%.
Phil Brace, current CEO of Skyworks, will serve as the CEO of the combined company and Bruggeworth will join the new company’s Board of Directors.
