WASHINGTON, Oct 29 (Reuters) - Skyworks Solutions ( SWKS )
CEO Phil Brace sees a path toward chips that would help
smartphones have faster wireless data connections while
consuming less power by combining his firm's technologies with
those from smaller Qorvo ( QRVO ), he told Reuters in an
interview on Wednesday.
Skyworks on Tuesday announced a cash and stock offer to buy the
smaller Qorvo ( QRVO ) that values Qorvo ( QRVO ) at $9.76 billion. The two
companies are both major suppliers to Apple ( AAPL ) and other
smartphone firms, where their chips help to handle the radio
signals that carry wireless data.
While the two firms do have some areas of competition, Brace
said the challenge both face is the fast-growing amount of data
that has to be processed on phones and shuffled back and forth
between phones and data centers to power AI applications such as
chatbots. Brace said that some Qorvo ( QRVO ) technologies, such as
antenna tuners, could be combined with Skyworks products such as
filters to create combined chips that would consume less power -
which in turn frees up a smartphone's limited battery to handle
more AI work.
"All of that processing in those (AI) data centers
ultimately has to get out to people, and the way it's going to
get up to the people at the end is wirelessly," Brace told
Reuters in an interview. "Once we start putting some more AI and
inference and things at the edge (on phones) that's going to
require increasing demands on the (radio frequency chips) to be
able to transmit and receive more data and do so in a lower
power way."
Skyworks expects the deal to close in early 2027, and it
will need approval from regulators in China. Brace said he
believes the company can win approval for the deal because the
combined company's products could help Chinese handset makers
compete in the premium segment of the smartphone market.
"Some of those phone manufacturers still have and want
premium phones to compete with some of our other customers, and
having that high level of technology and high-level integration
is also something I think they're going to want," Brace said.