Apple Suppliers Skyworks and Qorvo Join Forces in $22 Billion Radio-Chip Merger
Skyworks Solutions will acquire smaller rival Qorvo in a stock-and-cash deal worth $22 billion. The combined company will become one of the largest U.S. suppliers of radio-frequency chips, serving Apple and several other smartphone makers. This move is designed to capture the rebound in smartphone demand following the post-pandemic slowdown and to strengthen their position amid Apple’s growing push for in-house chip production.
Under the agreement, Qorvo shareholders will receive $32.50 in cash and 0.960 of a Skyworks share for each Qorvo share held. The total offer of $105.31 per share represents a 14.3% premium over Qorvo’s previous closing price, valuing the company at $9.76 billion. Following the announcement, shares of both firms rose about 12% in pre-market trading, signaling strong investor approval.
Structure and Strategic Goals
Skyworks specializes in designing and manufacturing analog and mixed-signal chips used across wireless communication, automotive, and consumer electronics. Its strong forecast earlier this year reflected steady demand for analog chips, a trend expected to continue under the merged structure. The deal will allow both companies to pool research capabilities, expand market reach, and reduce production costs.
However, the merger could invite antitrust scrutiny since it combines two of the leading U.S. radio-frequency chipmakers. Still, both firms expect the transaction to close by early 2027 after regulatory reviews. Apple’s efforts to build its own radio chips—first featured in the iPhone 16e earlier this year—may eventually reduce dependence on suppliers like Skyworks and Qorvo, adding competitive pressure over the long term.
After completion, Skyworks investors will hold about 63% of the new entity, while Qorvo shareholders will own 37% on a fully diluted basis. The combined company will be led by Skyworks CEO Phil Brace, with Qorvo’s Bob Bruggeworth joining the board. Regulatory filings show both companies agreed not to solicit other acquisition offers during the process, ensuring the deal proceeds smoothly.
Investor Influence and Leadership Outlook
The merger follows months of talks and comes amid growing activist investor pressure. Earlier this year, Qorvo appointed industry veterans Richard Clemmer and Christopher Koopmans as independent directors after shareholder Starboard Value urged management to boost the company’s underperforming stock. Starboard recently raised its stake to nearly 9%, positioning itself as one of Qorvo’s most influential investors.
Industry analysts believe this merger could reshape the competitive landscape in radio-frequency semiconductors. Although Apple’s internal chip development poses long-term challenges, the Skyworks–Qorvo alliance aims to create greater scale, innovation capacity, and pricing strength. With global smartphone demand beginning to recover, the deal marks a strategic attempt to secure a stronger foothold before market dynamics shift again.
