Apple suppliers Qorvo and Skyworks to merge, creating a $22 billion chip giant

Apple suppliers Skyworks Solutions and Qorvo will merge in a cash-and-stock deal to create a radio chip company with an enterprise value of $22 billion.

Qorvo shareholders will receive $32.50 in cash and 0.96 of a Skyworks common share for each Qorvo share held at the close of the transaction, which is expected in early 2027, pending shareholder and regulatory approvals.

Activist investor Starboard Value, which owns about 8% of Qorvo, has already signed off on the deal. On a conference call with investors on Tuesday, Skyworks said its biggest customers also expressed approval of the merger.

After closing, Skyworks shareholders will own roughly 63% of the combined company, with Qorvo shareholders owning the remaining 37%.

The companies, which make radio frequency components and semiconductors for a broad array of technologies, including mobile phones, said that with demand growing, they will be better able to compete with larger rivals as a single company.

Skyworks CEO Phil Brace will take the chief executive job at the combined company, while Qorvo CEO Bob Bruggeworth will join the board. Upon closing, the company’s board will have eight directors from Skyworks and three from Qorvo.

Skyworks specializes in high-performance analog and mixed-signal semiconductors, while Qorvo provides connectivity and power solutions. The companies say combining will create a $5.1 billion mobile business.

Skyworks, based in Irvine, California, released its preliminary fourth-quarter results on Tuesday, beating Wall Street revenue and profit expectations.

Qorvo, based in Greensboro, North Carolina, posted preliminary results from its most recent quarter as well, which also came in ahead of Wall Street’s projections.