In a landmark deal announced on Tuesday, Skyworks Solutions and Qorvo have agreed to merge, creating a $22 billion combined entity that will dominate the radio-frequency (RF) chip market. The merger, structured as a stock-and-cash transaction, aims to capitalize on the resurgence in smartphone demand following the post-pandemic downturn. Qorvo shareholders will receive $32.50 in cash and 0.960 Skyworks shares for each share held, valuing the deal at a 14.3% premium to Qorvo’s closing price on Monday. Shares of both companies surged approximately 12% in pre-market trading. Skyworks CEO Phil Brace will lead the merged company, while Qorvo’s CEO Bob Bruggeworth will join the board. The combined firm will hold a significant position in supplying RF chips to Apple and other smartphone manufacturers, though Apple’s ongoing development of in-house chips could pose long-term challenges. The merger is expected to face rigorous antitrust scrutiny, with the deal projected to close by early 2027. Skyworks investors will own about 63% of the new entity, with Qorvo shareholders holding the remaining 37%. The merger follows months of discussions and comes amid activist investor Starboard Value’s push to enhance Qorvo’s share price.