Skyworks and Panasonic Form Joint Venture for High Performance Filter Solutions

  Skyworks and Panasonic Form Joint Venture for High Performance Filter
  Solutions

Skyworks Acquires Majority Interest and Expects Transaction to be Immediately
                        Accretive to Margins and EPS;

               Expected to Close Before the End of Fiscal 2014;

            JV Complements Existing Strategic Filter Partnerships

Business Wire

WOBURN, Mass. -- April 28, 2014

Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance
analog semiconductors enabling a broad range of end markets, today announced
the creation of a joint venture with Panasonic Corporation, one of the largest
electronic product manufacturers in the world, to design, develop and deliver
high performance filters including surface acoustic wave (SAW) and temperature
compensated (TC) SAW devices. At the core of the joint venture is Panasonic
Filter Division’s engineering and process talent, expertise in filter design
and leading edge products as well as 412 fundamental filter patents and patent
applications.

“We believe this new venture leverages the core strengths of both companies to
better serve the high volume filter market and positions us to substantially
grow the business, benefiting our customers and employees,” said Shigeru Ono,
director of Panasonic’s Circuit Components Business Division.

“We are excited to be joining forces with Panasonic in bringing highly
innovative filters to the exploding mobile connectivity and Internet of Things
markets,” said David J. Aldrich, president and chief executive officer of
Skyworks. “Panasonic has a long heritage in SAW filter products and is the
clear performance leader and largest volume producer of rapidly emerging TC
SAW filters with shipments already approaching a quarter of a billion units.
Our joint venture structure capitalizes on Panasonic’s acoustic filtering and
piezoelectric leadership while further augmenting Skyworks’ product breadth
and integration capabilities. Together we intend to deliver the world’s
highest performance, lowest cost and shortest cycle time solutions. Further,
Skyworks’ joint venture with Panasonic is complementary to our strategic
investments in high frequency bulk acoustic filters. As a result, we can now
develop customized solutions for any band configuration where filter
technology is applicable, spanning high, mid and low band frequencies. In
short, Skyworks has covered the RF spectrum with best in class filter
products, by targeted band, allowing us to offer differentiated architectures
for the most demanding customer applications.”

About the Joint Venture with Panasonic

At closing, Skyworks will hold 66 percent of the newly created entity with
Panasonic retaining 34 percent. The transaction encompasses the products,
working capital, manufacturing equipment and intellectual property of
Panasonic’s Filter Division. The joint venture will be comprised of
approximately 590 employees and headquartered in Osaka, Japan with design
centers and operations at facilities in Japan and Singapore.

For consideration, Skyworks will make a cash payment of $148.5 million to
Panasonic for its share of the new venture. This investment is expected to be
immediately accretive to Skyworks’ margins and earnings per share. Skyworks
and Panasonic expect the transaction to close before the end of the third
calendar quarter of 2014, subject to customary closing conditions.

Filter Market Drivers and Panasonic’s Leadership

The insatiable demand for always-on connectivity and ever increasing user data
demands have driven a proliferation of bands and the addition of 4G/LTE
capabilities. In fact, 3GPP now has more than 45 sanctioned bands. This is
significantly increasing the demand for filters and especially for high
performance TC SAW filters which enable the dense packing of bands. The need
for world class sensitivity and the increasing co-existence issues, due to
simultaneous operation of GPS, WiFi, Bluetooth, and cellular radios
necessitate the extremely high quality filtering enabled by Panasonic’s
technology.

Panasonic's high performance filter portfolio offers several demonstrable
advantages including:

  *Reduced size and weight
  *Higher selectivity
  *Excellent Q and low insertion loss
  *Reliability and stability under harsh environments
  *Lower distortion
  *Field proven, high volume production

About Panasonic

Panasonic Corporation is a worldwide leader in the development and engineering
of electronic technologies and solutions for customers in residential,
non-residential, mobility and personal applications. Since its founding in
1918, the company has expanded globally and now operates over 500 consolidated
companies worldwide, recording consolidated net sales of 7.30 trillion yen for
the year ended March 31, 2013. Committed to pursuing new value through
innovation across divisional lines, the company strives to create a better
life and a better world for its customers. For more information about
Panasonic, please visit the company’s website at http://panasonic.net/.

About Skyworks

Skyworks Solutions, Inc. is an innovator of high performance analog
semiconductors. Leveraging core technologies, Skyworks supports automotive,
broadband, wireless infrastructure, energy management, GPS, industrial,
medical, military, wireless networking, smartphone and tablet applications.
The Company’s portfolio includes amplifiers, attenuators, circulators,
demodulators, detectors, diodes, directional couplers, front-end modules,
hybrids, infrastructure RF subsystems, isolators, lighting and display
solutions, mixers, modulators, optocouplers, optoisolators, phase shifters,
PLLs/synthesizers/VCOs, power dividers/combiners, power management devices,
receivers, switches and technical ceramics.

Headquartered in Woburn, Mass., Skyworks is worldwide with engineering,
manufacturing, sales and service facilities throughout Asia, Europe and North
America. For more information, please visit Skyworks’ Web site at:
www.skyworksinc.com.

Skyworks’ Safe Harbor Statement

This news release includes "forward-looking statements" intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include
without limitation information relating to our ability to leverage the
strengths of the joint venture combination to better serve the high volume
filter market and position the joint venture to substantially grow new
business, our ability to broaden our product breadth and integration
capabilities and to deliver the world’s highest performance, lowest cost and
shortest cycle time solutions, our ability to offer a differentiated and
expanded product roadmap, and whether the joint venture investment will be
immediately accretive to our margins and earnings per share. Forward-looking
statements can often be identified by words such as "anticipates," "expects,"
"forecasts," "intends," "believes," "plans," "may," "will," or "continue," and
similar expressions and variations or negatives of these words. All such
statements are subject to certain risks, uncertainties and other important
factors that could cause actual results to differ materially and adversely
from those projected, and may affect our future operating results, financial
position and cash flows.

These risks, uncertainties and other important factors include, but are not
limited to: uncertainty regarding global economic and financial market
conditions; the susceptibility of the semiconductor industry and the markets
addressed by our, and our customers', products to economic downturns; the
timing, rescheduling or cancellation of significant customer orders and our
ability, as well as the ability of our customers, to manage inventory; losses
or curtailments of purchases or payments from key customers, or the timing of
customer inventory adjustments; the availability and pricing of third party
semiconductor foundry, assembly and test capacity, raw materials and supplier
components; changes in laws, regulations and/or policies that could adversely
affect either (i) the economy and our customers’ demand for our products or
(ii) the financial markets and our ability to raise capital; our ability to
develop, manufacture and market innovative products in a highly price
competitive and rapidly changing technological environment; economic, social,
military and geo-political conditions in the countries in which we, our
customers or our suppliers operate, including security and health risks,
possible disruptions in transportation networks and fluctuations in foreign
currency exchange rates; fluctuations in our manufacturing yields due to our
complex and specialized manufacturing processes; delays or disruptions in
production due to equipment maintenance, repairs and/or upgrades; our reliance
on several key customers for a large percentage of our sales; fluctuations in
the manufacturing yields of our third party semiconductor foundries and other
problems or delays in the fabrication, assembly, testing or delivery of our
products; our ability to timely and accurately predict market requirements and
evolving industry standards, and to identify opportunities in new markets;
uncertainties of litigation, including potential disputes over intellectual
property infringement and rights, as well as payments related to the licensing
and/or sale of such rights; our ability to rapidly develop new products and
avoid product obsolescence; our ability to retain, recruit and hire key
executives, technical personnel and other employees in the positions and
numbers, with the experience and capabilities, and at the compensation levels
needed to implement our business and product plans; lengthy product
development cycles that impact the timing of new product introductions;
unfavorable changes in product mix; the quality of our products and any
remediation costs; shorter than expected product life cycles; problems or
delays that we may face in shifting our products to smaller geometry process
technologies and in achieving higher levels of design integration; and our
ability to continue to grow and maintain an intellectual property portfolio
and obtain needed licenses from third parties, as well as other risks and
uncertainties, including, but not limited to, those detailed from time to time
in our filings with the Securities and Exchange Commission.

The forward-looking statements contained in this news release are made only as
of the date hereof, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise.

Note to Editors: Skyworks and Skyworks Solutions are trademarks or registered
trademarks of Skyworks Solutions, Inc. or its subsidiaries in the United
States and in other countries. All other brands and names listed are
trademarks of their respective companies.

Contact:

Skyworks Media Relations:
Pilar Barrigas, (949) 231-3061
or
Skyworks Investor Relations:
Stephen Ferranti, (781) 376-3056
 
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