Skyworks acquisition of Qorvo puts RF semiconductor supply consolidation in focus

The late-2025 cash-and-stock agreement to combine Qorvo (NASDAQ: QRVO) with semiconductor competitor Skyworks (NASDAQ: SWKS) is in focus after FPA Queens Road Small Cap Value Fund disclosed it sold its position when the deal was announced. Qorvo supplies radio-frequency and connectivity semiconductors for smartphones, wireless infrastructure, and automotive systems. The stock closed at approximately $94.73 on August 31, 2026, within a 52-week range of $74.92 to $109.49 and a market capitalization of approximately $8.48 billion.

The exit rationale

First Pacific Advisors' Queens Road Small Cap Value Fund, writing in its Q2 2026 investor letter, described Qorvo as a wireless semiconductor supplier that always traded cheaply because of customer concentration. The fund held the name on the view that Qorvo's specialized knowledge and know-how provided durable protection. When Skyworks announced the acquisition, FPA sold the position outright.

The broader portfolio returned 27.02% in the first half of 2026, ahead of the Russell 2000 Value Index's 22.99% gain and the S&P 600 Index's 23.90% return. Small-cap technology surged nearly 100% in the period. Technology holdings within the fund gained 72.39% and contributed 14.87 percentage points to total return; the benchmark's technology sector returned 95.27% and added 7.10 points. The fund trimmed appreciated technology positions throughout the half and eliminated approximately $62 million in capital gains during Q2 and approximately $140 million year-to-date through July. It closed the quarter with 10.2% in cash, and the selection process stayed bottom-up, keeping the portfolio away from beaten-down software-as-a-service names as the range of AI-related outcomes widened.

Ownership and what to watch

Hedge fund presence in QRVO narrowed into the deal. The database tracked 49 portfolios holding the name at the end of Q1 2026, down from 57 the prior quarter. The one-month return on the stock at the time of the fund letter was 1.09%. What to watch: regulatory clearance for the Skyworks-Qorvo combination, which is the next hard milestone on the tape.

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