Merger of Apple Suppliers Skyworks and Qorvo: Birth of a $22B RF Chip Titan
Apple suppliers Skyworks Solutions and Qorvo have announced a definitive merger agreement, giving birth to a $22 billion radio frequency (RF) chip titan. This cash-and-stock deal unites two of the largest U.S. manufacturers of wireless communication components, widely used in iPhones and other devices.
As per the agreement, Qorvo shareholders will receive $32.50 in cash plus 0.960 Skyworks shares for each Qorvo share held, representing a 14.3% premium. Skyworks CEO Phil Brace is set to lead the newly formed entity, with Qorvo’s Bob Bruggeworth joining the board. The transaction is expected to close in early 2027.
This merger comes at a time when both companies are facing pressure from Apple’s development of in-house radio frequency chips. This move could potentially reduce Apple’s future dependence on external suppliers. The combined entity aims to leverage economies of scale and enhanced R&D capabilities to compete more effectively in the rapidly growing 5G and wireless infrastructure markets.
Source: CNBC