On Tuesday local time, US radio frequency chip company Skyworks Solutions announced the acquisition of Qorvo Semiconductor. The two companies will merge to form a large enterprise valued at approximately $22 billion (about 156.474 billion yuan), providing radio frequency (RF) chips for Apple and other smartphone manufacturers. This move will create one of the largest RF chip suppliers in the United States.

According to the terms of the agreement, Qorvo shareholders will receive $32.50 in cash per share and 0.960 shares of Skyworks stock. Based on Monday’s closing price, this offer is equivalent to $105.31 per share, representing a 14.3% premium over the previous trading day’s closing price, and corresponding to an overall valuation of approximately $9.76 billion.

After the announcement, the stock prices of both companies rose by approximately 12% in pre-market trading. Industry experts believe that this merger will significantly enhance the scale and bargaining power of the combined company, and strengthen its competitive position in the global radio frequency chip market.

Skyworks specializes in designing and manufacturing analog and mixed-signal chips that are used in wireless communications, automotive electronics, industrial equipment, and consumer electronics products. In August this year, the company predicted that its revenue and profits in the fourth quarter would exceed Wall Street expectations, mainly due to the strong demand for its analog chips in the market.

The preliminary data shows that Skyworks’ revenue for the fourth fiscal quarter was approximately $1.1 billion, with a GAAP diluted earnings per share of $1.07; for the full fiscal year 2025, the revenue was approximately $4.09 billion, with GAAP operating income of $524 million and non-GAAP operating income of $995 million.

Qorvo also simultaneously released its preliminary results for the second quarter of the fiscal year 2026. According to the Generally Accepted Accounting Principles (GAAP) of the United States, its revenue was 1.1 billion US dollars, with a gross profit margin of 47.0%, and diluted earnings per share of 1.28 US dollars; calculated based on the Non-GAAP (Non-Governmental Accounting Principles), the gross profit margin was 49.7%, and diluted earnings per share was 2.22 US dollars.

Industry analysts believe that this merger will significantly enhance the scale and bargaining power of the combined enterprise in the field of RF front-end technology, helping to cope with the competitive pressure brought by Apple’s self-developed chips. Apple is gradually promoting the autonomy of RF chips. This trend has already been initially manifested in the iPhone 16e model released earlier this year, and it may weaken its reliance on external suppliers such as Skyworks and Qorvo in the future, posing a potential challenge to the long-term sales prospects of both companies.

Skyworks stated that the combined company’s annual revenue would reach approximately $7.7 billion, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounting to around $2.1 billion. It also projected that within three years, it would achieve annual cost synergies of over $500 million.

After the merger, the company will have a mobile business worth $5.1 billion and a “wide market” business division worth $2.6 billion. The latter focuses on areas such as defense, aerospace, edge IoT, automotive and AI data centers, where the product cycles are longer and the profit margins are higher. Both parties also stated that the merger will expand their production capacity in the United States and increase the utilization rate of domestic factories. The new company will have approximately 8,000 engineers and hold over 12,000 patents (including those in the application process). Through the integration of R&D and manufacturing resources, this new company aims to compete more effectively with global semiconductor giants and seize the opportunities brought by
the growth in demand for advanced radio frequency systems and AI-driven electronic products.