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Wireless chipmakers Skyworks Solutions (SWKS) and Qorvo (QRVO) on Tuesday announced plans to merge, creating one of the largest suppliers of smartphone radio-frequency chips. Skyworks stock and Qorvo stock jumped on the news. The combined company would have annual revenue of $7.7 billion and adjusted earnings of $2.1 billion, the firms said in a news release. The mobile phone business would generate $5.1 billion in annual sales. The merger comes as both companies are facing pressure from customer Apple (AAPL), which is developing its own modem chips. Under the deal, Qorvo shareholders will receive $32.50 in cash and 0.96 of a Skyworks share for each share held. The cash-and-stock deal values the combined company at $22 billion. Once the deal closes, Skyworks investors will hold about 63% of the merged company, with Qorvo shareholders owning the remaining 37% on a fully diluted basis. Skyworks Chief Executive Officer Phil Brace will serve as CEO of the combined company. Qorvo CEO Bob Bruggeworth will join the board of directors of the combined company. Skyworks Stock And Qorvo Stock Jump On the stock market today, Skyworks stock rose 5.8% to close at 80.26. Qorvo stock advanced 5.7% to close at 97.42. "Combining Skyworks' and Qorvo's complementary portfolios and world-class engineering teams will strengthen our ability to meet growing customer demand across mobile and diversified Broad Markets," Brace said in a statement. "With enhanced scale, a more diversified customer base and operational synergies, we can bring even greater innovation to our customers and sustainable value to our shareholders." The Broad Markets business includes defense and aerospace, edge Internet of Things, AI data center and automotive markets. Skyworks and Qorvo expect the deal to close in early 2027, pending regulatory and shareholder approvals. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE
