Starboard says Skyworks Solutions, Inc. (SWKS.US) remains undervalued: merger with Qorvo to save $500 million over three years, operating margin forecast at least 30%

Starboard Value believes Skyworks Solutions, Inc. (SWKS.US) has significant upside potential, provided it can achieve its merger goals with Qorvo, because their product portfolios are complementary, and believes the company remains undervalued, according to people familiar with the matter. This follows Starboard Value having obtained a stake in Skyworks Solutions, Inc. through its acquisition of Qorvo. Starboard believes Skyworks Solutions, Inc. remains undervalued after completing its acquisition of Qorvo this month, according to people familiar with the matter who requested anonymity because the details have not been made public. These people said Starboard had supported the deal when it held Qorvo as an activist investor, and now believes the two companies' product portfolios are complementary and that Skyworks Solutions, Inc. has good growth opportunities. Starboard views this as a highly compelling deal, which includes a target of achieving $500 million or more in annual cost savings within three years, according to the people familiar with the matter. The activist investment firm believes the market has recognized neither this potential cost savings nor management's forecast of operating margins reaching 30% to 35% within two to three years. Starboard Value Chief Executive Smith is expected to discuss this latest investment on October 20 at the 13D Monitor Active-Passive Investor Summit in New York, where he is the keynote speaker. Skyworks Solutions, Inc. agreed last year to acquire Qorvo, in a transaction that valued the combined company at approximately $22 billion. Previously, both companies had been grappling with slowing growth after Apple Inc. decided to replace third-party chips with its own components. Both Skyworks Solutions, Inc. and Qorvo make tiny electronic chips used for smartphone communications, as well as for non-mobile businesses such as data centers and fighter jets. Skyworks Solutions, Inc. rose 0.8% in U.S. trading on Friday to close at $79.70, giving the company a market value of approximately $18.7 billion. The stock has gained about 4.7% over the past year. Starboard took a stake in Qorvo in 2025 to push for operational improvements. Qorvo agreed to add Starboard managing member and head of research Peter Feld to its board, thereby avoiding a proxy fight. Two executives who joined Qorvo's board with Starboard's help remain on Skyworks Solutions, Inc.'s board: Marvell Technology, Inc. President Chris Koopmans and former NXP Semiconductors NV chief executive Rick Clemmer. Starboard has previously targeted some of the world's largest companies. According to data, the firm recently established a new position in Shake Shack Inc. while remaining active in Dynatrace Inc., CarMax Inc., and Lamb Weston Holdings Inc.