Skyworks Supports Broadcom's 5G Chips

Skyworks Solutions Inc. ( SWKS - Analyst Report ) recently commenced volume production of several high performance RF solutions, which are expected to support Broadcom Corporation’s ( BRCM - Analyst Report ) 5G WiFi chips.

These also include minicards for access points, routers and customer premise equipment.

The continuous increase in the number of wireless devices used by consumers along with the explosion of video consumption, are congesting existing 802.11 a/b/g/n networks

Skyworks Solutions designs, manufactures, and markets a broad range of high performance analog and mixed signal semiconductors that enable wireless connectivity. The company’s products include power amplifiers (PAs), front-end modules (FEMs), radio frequency (RF) sub-systems, and cellular systems.

Leveraging its core analog technologies, the company also offers a diverse portfolio of linear integrated circuits (ICs) that support automotive, broadband, cellular infrastructure, industrial and medical applications.

Skyworks is optimistic about its partner Broadcom’s revolutionary wireless technology given its ubiquitous presence. Consumers now want high-definition video at high speed on multiple devices, anywhere and everywhere in the house – be it TV, or getting transferred to tablets and smartphones.

In order to address this demand, Broadcom is actively working with Skyworks to create 5G WiFi products of the best capability.

Demand for mobile Internet applications is exploding with the broad proliferation of smartphones, net books, note books, tablets and other forms of embedded wireless devices. Skyworks Solutions continues to consolidate its share across the mobile Internet spectrum. This covers everything from net books and data cards to smartphones, and even entry level handsets.

We recently upgraded our recommendation on Skyworks Solutions Inc. to Outperform from Neutral. Currently, the stock carries a Zacks #3 Rank, which translates into a short-term rating of Hold, owing to an uncertain near-term environment.