Skyworks Solutions, Inc
) recently announced a joint venture with global electronics
) for developing high-performance filter solutions. As part of
the deal, Skyworks will pay $148.5 million in cash for a 66%
stake in the venture with Panasonic holding the remaining 34%.
The transaction is expected to close by the third quarter of
The joint venture aims to design, develop and deliver filters
such as surface acoustic wave (SAW) and temperature compensated
(TC) SAW devices.
The transaction is complementary to Skyworks' strategic
investments in high-performance bulk acoustic filters and brings
innovative products to the rapidly growing mobile connectivity
and Internet markets. It aims to develop customized solutions for
all band configurations with filter technology applicability,
spanning high, mid and low band frequencies. The transaction is a
win-win situation for both the companies.
There is growing demand for high-performance TC SAW filters which
enable the dense packing of bands. Panasonic has an edge in SAW
filter products and is the largest producer of TC SAW filters
with approximately 250 million units shipped to date.
Panasonic's high-performance filter portfolio is competitive in
comparison to other similar products in the market. With the
reduced size and weight, lower distortion and low insertion loss,
the new venture leverages the core strength of both companies and
serves the fast growing filter market in an effective manner.
Also, Skyworks' product breadth and integration capabilities
coupled with Panasonic's leadership in filtering are expected to
be beneficial for both the companies. The transaction is expected
to be immediately accretive to Skyworks' margins and earnings per
Skyworks designs, manufactures, and markets a broad range of high
performance analog and mixed signal semiconductors that enable
Skyworks currently has a Zacks Rank #1 (Strong Buy). Other
stocks that look promising and are worth a look now include
TriQuint Semiconductor, Inc.
), both carrying a Zacks Rank #2 (Buy).
BROADCOM CORP-A (BRCM): Free Stock Analysis
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SKYWORKS SOLUTN (SWKS): Free Stock Analysis
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