#SWKS - long5 Things You Didn't Know About Skyworks Solutions, Inc.
Let’s examine five lesser-known facts about the Apple supplier.
Leo Sun (TMFSunLion) Jul 18, 2017 at 7:03AM
Skyworks Solutions (NASDAQ:SWKS) supplies power amplifiers, front-end modules, and RF chips to a wide range of industries, but it's best-known as an Apple (NASDAQ:AAPL) supplier. That's because orders from the iPhone maker accounted for 40% of its revenues last year.
Skyworks is also the chipmaker that nearly bought PMC-Sierra for $2 billion in late 2015, but was eventually outbid by Microsemi (NASDAQ:MSCC). It's frequently mentioned as a long-term play on the Internet of Things (IoT) market, since its chips provide connectivity to all sorts of devices.
A graphical representation of the Internet of Things.
SOURCE: GETTY.
But instead of focusing on those well-known facts about Skyworks, let's check out five lesser-known facts that might change your overall perception of the chipmaker.
1. It was formed via a merger
15 years ago, chipmaker Alpha Industries merged with Conexant Systems. Both companies produced RF chips, power amplifiers, and other communication chips for a wide range of industries. The new company was named Skyworks, which promoted itself as a "pure play" wireless integrated circuit company.
Alpha CEO David Aldrich became Skyworks' CEO and led the company until last year, when he was succeeded by Liam Griffin, a former executive at Dover and AT&T. Griffin also serves on the board of Vicor, which designs and manufactures modular power components and complete power systems.
2. It recently joined the Semiconductor Industry Association
Earlier this year, Skyworks joined the Semiconductor Industry Association (SIA), which represents the U.S. semiconductor industry in talks with the government and other industry stakeholders. Skyworks is now one of the 18 charter members of the group -- which also includes industry heavyweights like Intel, Qualcomm, and Texas Instruments.
SIA President and CEO John Neuffer noted that the addition of Skyworks demonstrates the "growing momentum for collaboration among key semiconductor leaders to shape public policies that impact our industry."
Neuffer noted that the goals of the association include "making the U.S tax system globally competitive, investing in university-based basic research, expanding access to global markets, and strengthening America's tech workforce."
3. It has a Sustainability Council
Skyworks has its own "Sustainability Council", a team that ensures that the company improves its labor, environment, health, safety, ethics, and management standards. Last year, the council reported that Skyworks saved 32 million kWh in electricity and 38 million gallons of water with new energy-efficient standards.
It also averted 10,000 tons of CO2 equivalent emissions, 404,000 pounds of hazardous waste, and 494,000 pounds of municipal waste to landfills with its policies. 100% of its supply chain was verified as "conflict-free" -- indicating that its materials weren't purchased from war-torn regions.
Over 98% of employees' workweeks remained below the 60-hour limit set by the company, and more than 99% of its employees were trained on Skyworks' business conduct and ethics requirements.
4. It might buy Microsemi
Over the past few months, several reports claimed that Skyworks could buy Microsemi, which topped Skyworks' own bid for PMC-Sierra. Last November, RBC Capital analyst Mitch Steves suggested that Skyworks could buy Microsemi for $70 per share -- a near-40% premium to its current price.
However, Steves notes that Skyworks may need to outbid other potential buyers, including Texas Instruments and Maxim Integrated Products. But if it successfully acquires Microsemi, Skyworks would gain clout against Apple (since Microsemi is another Apple supplier), while scaling up its chipmaking operations.
5. It starred in a music video
A semiconductor plant is probably a weird setting for a music video, but that did
