[News] Apple Suppliers Skyworks and Qorvo Unite to Form $22 B U.S. RF Chip Powerhouse

A major shake-up is underway in the RF chip industry as Qorvo and Skyworks—two of Apple’s key suppliers—agree to merge. According to Reuters, Skyworks Solutions said on Tuesday that it will acquire smaller rival Qorvo, creating a combined company valued at around $22 billion. The deal will form one of the largest U.S. suppliers of radio-frequency chips, aiming to capture a recovery in smartphone demand following the post-pandemic slowdown, while also facing headwinds from Apple’s push to develop more chips in-house.

As the report notes, Skyworks CEO Phil Brace will lead the newly merged company as chief executive, while Qorvo’s Bob Bruggeworth will join its board of directors. Upon completion of the transaction, Skyworks shareholders are expected to own about 63% of the combined firm, with Qorvo investors holding the remaining 37% on a fully diluted basis. The companies anticipate that the deal will close in early 2027.

Apple’s efforts to develop its own radio chips, first introduced in the iPhone 16e earlier this year, could gradually reduce its reliance on suppliers such as Skyworks and Qorvo, potentially weighing on their long-term revenue. Both companies depend heavily on Apple’s orders, with nearly two-thirds of Skyworks’ revenue coming from the iPhone maker, while Qorvo generates almost half of its sales from Apple, as highlighted by Economic Daily News.

At the same time, Reuters notes that the merger—bringing together two major U.S. RF chipmakers—is likely to face antitrust scrutiny, given the firms’ leading positions in the smartphone component market.

U.S. RF Chip Merger Strengthens Global Position

Despite potential regulatory hurdles, Economic Daily News points out that the merger could also create a more competitive American player in the wireless connectivity chip sector. The move aligns with broader efforts by the U.S. and European governments to strengthen their semiconductor industries and reduce reliance on Asia.

Similarly, CMoney, citing industry sources, indicates that the merger will enable the combined company to better withstand competition from Chinese and South Korean rivals, enhance its bargaining power, lower manufacturing costs, and deliver a more attractive product lineup to Apple and other global device brands.

However, institutional investors also warn, according to CMoney, that large semiconductor mergers often face early-stage integration challenges, including R&D culture alignment, customer coordination, and production scheduling. In addition, major clients such as Apple may seize the opportunity to renegotiate prices, creating short-term operational uncertainty even as the merger seeks longer-term strategic gains.

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(Photo credit: Skyworks)