Skyworks Solutions and Qorvo have entered into an agreement to merge in a cash-and-stock transaction valued at approximately $22 billion, forming a U.S.-based powerhouse in radio frequency (RF), analog, and mixed-signal semiconductors.
The combined entity will have revenue of $7.7 billion and Adjusted EBITDA of $2.1 billion, positioning it to compete more effectively with larger semiconductor rivals while driving stronger innovation, cost efficiencies, and growth in high-demand markets such as mobile, defense, aerospace, automotive, IoT, and AI data centers, Skyworks Solutions said.
Strengthening Leadership in RF and Analog Markets
Skyworks CEO Phil Brace the merger enhances scale and innovation. “Combining Skyworks’ and Qorvo’s complementary portfolios and world-class engineering teams will strengthen our ability to meet growing customer demand across mobile and diversified Broad Markets,” Phil Brace said.
Qorvo CEO Bob Bruggeworth said: “We can deliver broader and more comprehensive solutions across numerous growth sectors, including defense, AI, and automotive.”
Strategic Benefits of the Skyworks–Qorvo Merger
1. Enhanced Scale and Financial Profile:
The merged company will benefit from a balanced $7.7 billion revenue base, improved cost structure, and resilient cash generation across market cycles.
2. Expanded Innovation Pipeline:
With over 8,000 engineers and 12,000 issued and pending patents, the combined firm will advance next-generation integrated RF and power technologies to meet rising design complexity and global demand.
3. Stronger Mobile Segment:
A $5.1 billion mobile business will be created through complementary RF technologies, improving competitiveness across mobile platforms and enhancing customer integration.
4. Diversified Broad Markets Growth:
The merger establishes a $2.6 billion diversified Broad Markets platform, targeting long-cycle, high-margin segments such as defense & aerospace, automotive, edge IoT, and AI data centers.
5. Domestic Manufacturing and Efficiency:
Skyworks and Qorvo aim to enhance U.S. manufacturing capabilities and improve utilization across their production network, supported by a robust domestic and international supply chain.
6. Significant Cost Synergies:
The transaction is expected to deliver $500 million or more in annual cost synergies within 24–36 months post-closing, while being immediately accretive to non-GAAP EPS.
Transaction Structure and Leadership
Under the agreement:
Qorvo shareholders will receive $32.50 in cash and 0.960 Skyworks shares per Qorvo share.
Skyworks shareholders will own approximately 63 percent of the combined company, and Qorvo shareholders will hold around 37 percent.
Phil Brace will serve as CEO, and Bob Bruggeworth will join the new Board of Directors, which will include 11 members (8 from Skyworks and 3 from Qorvo).
Skyworks will finance the cash portion of the deal using available cash and debt financing from Goldman Sachs Bank USA. The combined company expects net leverage of approximately 1.0x Adjusted EBITDA at closing, providing flexibility for continued investment and growth.
The Skyworks–Qorvo merger marks one of the largest semiconductor consolidations in recent years, strengthening U.S. leadership in RF and analog technologies amid rising global demand for connectivity, 5G, and edge intelligence.
Baburajan Kizhakedath
