Page 1 of 6 Skip to Main Content Help View Gale Resources Return to Library Select Interface Language: English ( English) Back to Search Results Skyworks Solutions, Inc International Directory of Company Histories Company Perspectives Skyworks Solutions, Inc., is an innovator of high reliability analog and mixed signal semiconductors. Leveraging core technologies, Skyworks offers diverse standard and custom linear products supporting automotive, broadband, cellular infrastructure, energy management, industrial, medical, military and mobile handset applications. Headquartered in Woburn, Massachusetts, Skyworks Solutions, Inc., is a leading developer of analog semiconductors. The company markets its products, which include technology components such as amplifiers, attenuators, circulators, detectors, diodes, power management devices, and switches, to companies in a wide range of industries, including wireless communications, energy management, health care, automotive manufacturing, and defense. Skyworks counts some of the world's leading corporations among its customers, including Google, Inc., Motorola, Inc., Sony Corporation, Northrop Grumman Corporation, Dell Inc., Lenovo Group Ltd., LG Electronics, and Cisco Systems, Inc. Origins Skyworks originated in 2002, when Conexant Systems Inc. (formerly Rockwell Semiconductor) merged its wireless operations with Alpha Industries Inc. The deal was worth more than $3 billion. According to some analysts, it formed the world's largest pureplay wireless semiconductor enterprise, with approximately 4,000 employees and annual sales of $600 million. The new company maintained its headquarters in Woborn, Massachusetts, where Alpha Industries had been operating since 1962 as a supplier of technology components to the military. Alpha Industries' founder was George S. Kariotis, who gained notoriety after being
Page 2 of 6 nominated by the Republican Party to challenge Michael Dukakis for the governor's seat in 1986. Kariotis led the company until 1991 and was named chairman emeritus in May 2000. David Aldrich, the CEO of Alpha Industries, was appointed to serve as the CEO of the newly formed enterprise. In a May 21, 2002, press release, he elaborated on the organization's name. Sky referred to "the vast and growing nature of wireless communications," while works spoke to the company's "ability to solve problems and provide customers with integrated solutions." Breakthrough Simplicity The merger that produced Skyworks received shareholder approval in June 2002, and the company began trading under the ticker symbol SWKS. Moving forward, Skyworks adopted the tagline "Breakthrough Simplicity" and committed itself to offering its customers solutions that simplified the complexity of wireless technologies. The company entered the wireless handset market and began marketing more simplified integrated components to original equipment manufacturers (OEMs), which enabled them to streamline their supply chains. Following the formation of Skyworks, one of the first major developments to take place was the elimination of 350 jobs from the company's workforce. In addition, operations were restructured. Assembly work was relocated to the company's facility in Mexicali, Mexico, while manufacturing and testing were centralized at facilities in Massachusetts and Maryland. In 2003 Skyworks named Gregory Waters as the vice president of its cellular infrastructure and wireless data business. The following year Allan M. Kline was named CFO. It also was in 2004 that Skyworks began supplying its technology to the mobile phone manufacturing subsidiary of China-based Qiao Xing Universal Telephone Inc. In addition, Skyworks began providing its technology to Beijing-based Xinwei Telecom Technology Company as part of an effort to expand telecommunications services into rural areas of China. Back in the United States, Skyworks established a development partnership with Motorola in 2005. Specifically, the company agreed to provide its Helios DigRF technology for use in Motorola's Edge radio. The technology made it possible to add capabilities such as streaming video, web browsing, and music downloads. Emerging Markets By the end of 2005 many OEMs were seeking ways to lower the cost of their mobile phones without compromising performance or quality. This approach was essential for the introduction of mobile phones in emerging markets, including Southeast Asia and Africa. Tremendous growth potential existed in markets such as these, where billions of people lived within range of cellular service providers but did not subscribe for service.
Page 3 of 6 To help manufacturers be more successful in emerging markets, Skyworks continued to offer components that helped them lower their costs. An example of this occurred in late 2005, when the company began supplying LG Electronics with its GSM/GPRS radio system. In early 2006 the company reached a major milestone when shipments of its Intera front-end modules reached the 100-million-unit mark. Specifically, the component was used in popular products from several leading manufacturers. Examples included Sony Ericsson Walkman phones and the Motorola RAZR. During the middle of the decade, Skyworks continued to see its components incorporated into the latest generation of consumer electronics. For example, in mid-2006 the company began bolstering production to meet demand from Sony Ericsson, which planned to use Skyworks's technology in its Cyber-shot digital camera phone and W810 Walkman music phone. In September of that year the company announced the introduction of its mobile radio system mixers that had applications in industrial, medical, scientific, and infrastructure markets. Baseband Market Withdrawal In late 2006 Skyworks announced its withdrawal from the baseband market. This researchintensive area of the company's business, which included technology components such as digital signal processors, had experienced financial losses. Skyworks wanted to focus on the production of more profitable mobile handset components, including power amplifiers, radio solutions, and front-end modules. Along with this change the company announced the elimination of 425 employees and the closing of several facilities, which was expected to save approximately $70 million. In 2007 Skyworks announced the retirement of Kline. He was succeeded by Donald W. Palette. That same year increased demand for Skyworks's products led the company to expand its manufacturing facility in Newbury Park, California. In addition, Skyworks extended its own manufacturing capabilities by establishing partnerships with foundries in Taiwan. Skyworks's sales reached $742 million in 2007, on the strength of a global workforce that included approximately 3,400 employees. By this time the company was marketing its products to leading manufacturers such as Panasonic Corporation, Siemens AG, Kyocera Corporation, Nokia Corporation, Motorola, Inc., Sony Ericsson, and LG Electronics. Boding well for the company's future were projections from analysts indicating that more than 1 billion cellular phones would be sold in 2008 alone. Another milestone was attained in mid-2008, when Skyworks's components were used in the Samsung P960, Europe's very first mobile television slider phone. Following that, the company shipped its 2 billionth power amplifier. This critical component was responsible for
Page 4 of 6 amplifying the signal from a mobile phone, so that it could be transmitted to cellular towers. That same year Skyworks announced a multimillion-dollar, five-year component supply contract with Lockheed Martin Corporation, in connection with the Aegis naval weapons system. Accolades and Recognition Progress continued in mid-2009, when a global distribution agreement was made with the electronic components distributor Digi-Key Corporation. In 2009 Skyworks was honored with a number of awards. In March the company received LG Electronics's 2008 Best Supplier Award for the second consecutive year. Two months later Skyworks ranked 15th on the Globe 100, an annual top-performing company listing compiled by the Boston Globe. In August the company received the 2008 Silver Gateway Supplier of the Year Award from 2Wire. It was also in 2009 that Skyworks acquired Axiom Microdevices, a manufacturer of power amplifiers for mobile handsets. In 2010 Skyworks expanded its presence in Asia by establishing an office in Singapore. The new location was designed to support a number of areas, including supply chain planning, engineering, logistics, and strategic sourcing. Besides providing the company with storage and distribution, the Singapore site also functioned as a failure analysis laboratory. Midway through 2011 Skyworks acquired SiGe Semiconductor Inc., a developer of radio frequency solutions, for $210 million in cash. SiGe Semiconductor offered products that were similar, yet complementary, to those offered by Skyworks, allowing the company to expand its wireless product range in categories such as gaming consoles and tablet computers. Acquisition of Advanced Analogic Technologies Another merger unfolded around the same time when Skyworks agreed to acquire Advanced Analogic Technologies Inc. (AnalogicTech) for $262.5 million. Much like the SiGe Semiconductor acquisition, this deal would strengthen the company's offerings for a wide range of devices, including cameras, notebook and tablet computers, and LCD displays. In addition, Skyworks would gain new design facilities in both Santa Clara, California, and Shanghai, China. By September 2011, however, the AnalogicTech deal appeared to be headed for collapse. After Skyworks had difficulty gaining access to financial information related to the transaction, it prepared to terminate the agreement. This prompted AnalogicTech to seek recourse in the Delaware Chancery Court. Ultimately, the two companies reached a new agreement in November, and Skyworks was able to acquire AnalogicTech for a lower price. Another positive development occurred in late 2011, when Skyworks began shipping
Page 5 of 6 components to Siemens Healthcare for use in its MAGNETOM magnetic resonance imaging machine. Innovation In 2012 Skyworks was named to the Boston Globe's Globe 100 ranking for the fourth consecutive year. Midway through the year the company introduced a new line of highpowered radio frequency switches. In keeping with the company's philosophy, the new components were a simpler and more cost-effective alternative to those that manufacturers were already using. Military radios were one example of the potential applications for the new switches. In mid-2012 Skyworks unveiled a new component called SkyOne. The breakthrough semiconductor device combined a variety of high-tech components in one package. As an industry first, SkyOne allowed OEMs to save precious circuit board space, which was critical as electronic devices became thinner and smaller. Around the same time Skyworks announced that it was providing analog components for use in electronic toll collection systems. Approaching 2013, Skyworks was firmly established as a leader within its industry. Only 10 years after its formation, the company's revenues had more than doubled. Despite the unpredictability and volatility of technology markets, Skyworks had demonstrated its ability to meet the ever-changing needs of OEMs. Moving forward, the company appeared to be well positioned for continued success. Principal Subsidiaries Axiom Microdevices, Inc.; ICWave, LLC; Isolink, Inc.; SiGe Semiconductor, Inc.; SiGe Semiconductor Inc. (Canada); SiGe Semiconductor (USA), Corp.; SiGe Semiconductor (Europe) Limited (UK); SiGe Semiconductor (Hong Kong) Limited; Skyworks Communications Technology Development (Shanghai) Co., Ltd. (China); Skyworks International Investments, LLC; Skyworks Semiconductor (France); Skyworks Solutions Canada, Limited; Skyworks Solutions Company, Limited (Japan); Skyworks Solutions de Mexico, S de R.L. de C.V.; Skyworks Solutions India Private Limited; Skyworks Solutions Korea Limited; Skyworks Solutions Limited (UK); Skyworks Solutions Limited, Denmark - Representative Office; Skyworks Solutions Commercial Co., Ltd. (Shenzhen) (China); Skyworks Solutions Mauritius, Limited; Skyworks Solutions Oy (Finland); Skyworks Solutions Worldwide, Inc.; Skyworks Solutions Worldwide, Inc., Hong Kong Branch; Skyworks Solutions Worldwide, Inc., Taiwan Branch; Skyworks Solutions Worldwide, Inc., Malaysia Branch; Skyworks Global Pte. Ltd. (Singapore); Skyworks Luxembourg S.A.R.L.; Skyworks Ireland Limited; Trans-Tech, Inc.
Page 6 of 6 Principal Competitors ANADIGICS, Inc.; RF Micro Devices, Inc.; TriQuint Semiconductor, Inc. Further Readings "Recent Reports Show Semiconductor Companies Facing a Challenging Macroeconomic Environment." Internet Wire, July 19, 2012. "Skyworks Expands Manufacturing Capacity." Business Wire, October 25, 2007. "Skyworks Expands Presence in Asia." Business Wire, October 25, 2010. "Skyworks First to Reach 100 Million Front-End Module Shipments." Business Wire, February 7, 2006. "Skyworks Launches Analog Solutions for Automotive Toll Tag Systems." Health & Beauty Close-Up, July 19, 2012. "Skyworks Solutions Finalises SiGe Semiconductor Buy." Europe Intelligence Wire, June 13, 2011. Full Text: COPYRIGHT 2013 Gale, Cengage Learning http://www.gale.cengage.com/ Source Citation: "Skyworks Solutions, Inc." International Directory of Company Histories. Ed. Derek Jacques and Paula Kepos. Vol. 143. Detroit: St. James Press, 2013. Business Insights: Global. Web. 31 Jan. 2016. URL http://bi.galegroup.com/global/article/gale% 7CI2501316926/c9208036eaf9e6356492552592d004cc?u=kcls Document Number: GALE I2501316926