Skyworks-Qorvo Merger Creates a Chip Powerhouse

Skyworks and Qorvo's merger aims to save $500 million annually by reducing duplication, creating a leading RFFE company amid regulatory and organizational challenges.

Financial challenges caused by a stalling smartphone market and increased RF front end (RFFE) competition led Skyworks and Qorvo to agree to a merger. The companies expect the deal to save $500 million annually by eliminating product duplication; however, the deal will face regulatory hurdles and organizational challenges before the savings can be realized. On the positive side, the combined company will lead in RFFE market share, generate higher profits, and could develop cost-effective, new integrated circuits and system-in-package products that few competitors can match.