Skyworks Solutions Inc. and Qorvo Inc., two leading suppliers of radio frequency components used in Apple devices and other smartphones, announced Tuesday that they have agreed to merge in a stock and cash transaction valued at roughly $22 billion.
The deal marks one of the largest consolidations in the US semiconductor sector this year, as chipmakers seek greater scale and resilience amid soft smartphone sales and tightening supply chains.
The combined company is expected to become a dominant player in the global radio-chip market when the merger closes in early 2027, pending shareholder and regulatory approvals.
Under the terms of the agreement, Skyworks will acquire Qorvo in a transaction that values the smaller firm at about $9.76 billion.
Qorvo shareholders will receive $32.50 in cash and 0.960 shares of Skyworks common stock for each Qorvo share they own, translating to an overall value of approximately $105.31 per share a 14 percent premium compared with Qorvo’s closing price on Monday.
Following completion, Skyworks shareholders will own about 63 percent of the new entity, while Qorvo investors will hold roughly 37 percent.
Skyworks Chief Executive Phil Brace will lead the combined company, and Qorvo CEO Bob Bruggeworth will join the board of directors.
Both chipmakers design and manufacture radio frequency (RF) semiconductors crucial components that manage wireless communication in smartphones, cars and connected devices.
Skyworks supplies analog and mixed signal chips to Apple, Samsung, and other manufacturers, while Qorvo has deep experience in RF filters and amplifiers used in mobile and defense systems.
The companies said the merger would create a stronger and more diversified “radio chip giant” capable of serving not only the mobile industry but also emerging sectors such as automotive, industrial automation and connected infrastructure.
Analysts say the deal underscores the growing consolidation trend in the semiconductor industry, driven by the rising costs of innovation and increasing vertical integration by major clients such as Apple.
“Apple’s move to design its own chips has put significant pressure on component suppliers,” said Jonathan Lee, a semiconductor analyst at New York based firm TechEdge Research.
“Skyworks and Qorvo are trying to secure their future by combining engineering resources and customer bases. This merger gives them scale to compete not just in mobile, but in every device that relies on wireless connectivity.”
However, experts also noted that the deal could draw scrutiny from U.S. antitrust regulators given both companies’ dominant share in the smartphone RF chip market.
“Regulators will want to ensure that this consolidation doesn’t limit options for handset makers or slow down innovation,” said Maria Gomez, a former Federal Trade Commission attorney now at the Washington based Center for Digital Competition.
Both Skyworks and Qorvo are already key suppliers to Apple, which has reportedly been developing in house radio chips since the iPhone 16e launch earlier this year.
Analysts believe that while Apple’s shift toward self reliance could eventually reduce dependence on suppliers, the company will still rely on third party components for several years due to complexity and performance needs.
The combined company will have an estimated market capitalization of $22 billion and expected annual revenue of nearly $8 billion based on recent results.
Skyworks reported stronger-than-expected fourth quarter earnings earlier this year, supported by steady demand for analog chips in the automotive and industrial sectors.
Qorvo, meanwhile, has struggled with uneven smartphone demand, prompting activist investor Starboard Value to push for operational changes.
“This merger gives Qorvo a clearer growth path and provides Skyworks with access to complementary technologies,” said TechEdge’s Lee.
“Together, they’ll have more leverage to negotiate with large customers and compete with global rivals such as Broadcom and Qualcomm.”
Shares of both companies jumped roughly 12 percent in pre market trading after the announcement.
Analysts said the market’s positive reaction reflects investor confidence that the merger will lead to cost savings, efficiency improvements, and stronger pricing power in an increasingly competitive chip landscape.
Industry insiders described the merger as both inevitable and necessary. “When you see the direction Apple and Samsung are going building more of their own silicon suppliers have to consolidate to survive,” said Kevin Morris, an RF engineer based in Austin, Texas.
“Combining two strong US chipmakers like this might be the only way they can keep pace with Asia’s foundry giants.” Small suppliers expressed concern that the deal could shift power away from mid tier vendors.
“When big suppliers merge, it often means tougher terms for smaller partners down the supply chain,” said a representative from a California based chip packaging company, speaking on condition of anonymity.
At the same time, some analysts believe the creation of a US based radio chip leader could help balance global competition. “With China and South Korea investing heavily in chip production, a stronger American player could stabilize domestic supply chains,” said Gomez, the antitrust expert.
The creation of a new radio chip giant positions Skyworks and Qorvo to play a key role in next generation wireless technologies, including 5G, Wi-Fi 7, and vehicle to everything (V2X) systems.
Apple’s continued investment in proprietary RF designs could eventually reduce external demand, while global smartphone growth remains uncertain.
Additionally, the merger will undergo extensive antitrust review, which may delay completion beyond the companies’ projected 2027 timeline.
Still, the merger could reshape the balance of power within the semiconductor ecosystem. “If they can navigate regulatory hurdles and integrate smoothly, this new entity could become a cornerstone supplier for a wide range of connected devices,” said Lee.
The merger of Skyworks and Qorvo marks a significant turning point in the US semiconductor industry one driven by shifting demand, competitive pressures, and a race toward technological integration.
By combining their expertise and resources, the two companies aim to build a $22 billion radio chip powerhouse capable of serving the world’s most influential technology brands.
While regulatory challenges and long term market shifts loom, the deal signals a new phase of consolidation that could redefine how American chipmakers compete in the global wireless market.