Skyworks and Qorvo Stocks Soar as the Apple Suppliers Create $22 Billion Chip Business

The two companies make high-performance radio frequency, analog and mixed-signal semiconductors. (Dreamstime)

Key Points

• Skyworks Solutions and Qorvo will merge in a cash-and-stock deal that values the combined company at approximately $22 billion.
• Skyworks Chief Executive Phil Brace will lead the combined company; Qorvo CEO Bob Bruggeworth will join the board.
• Skyworks and Qorvo shares surge after the merger is announced.

Skyworks Solutions and Qorvo agreed to merge in a cash-and-stock deal that values the combined radio frequency, analog, and mixed-signal semiconductor maker at around $22 billion.

Qorvo shareholders will receive $32.50 in cash and 0.96 Skyworks common shares for each Qorvo share. When the deal closes, Skyworks stockholders will own 63% of the business and Qorvo shareholders will own the remaining 37%.

Shares of Skyworks jumped 12% in premarket trading Tuesday to $84.74. Qorvo shares rose 11% to $102.62.

Skyworks Chief Executive Phil Brace will serve as CEO of the combined company, while Qorvo CEO Bob Bruggeworth will join the board. The transaction is expected to close in early 2027, the companies said.

The move will combine two of the primary suppliers for components in Apple’s iPhones. Skyworks warned investors earlier this year that it expected to lose a chunk of its share of iPhone content to competitors. That list of rivals will no longer include Qorvo.

The two companies also reported preliminary quarterly earnings on Tuesday that surpassed Wall Street’s expectations.

Skyworks posted adjusted earnings of $1.76 a share for its fiscal fourth quarter on revenue of $1.1 billion, better than analysts’ estimates of $1.40 a share and $1.01 billion, respectively. Qorvo reported adjusted earnings of $2.22 a share and revenue of $1.06 billion in its fiscal second quarter. Wall Street had called for per-share earnings of $2.04 and revenue of $1.03 billion.

Write to Nate Wolf at nate.wolf@barrons.com