What changed in this filing

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Item 1. Business

2022-02-02 compared with 2021-02-03 · 38 added, 120 removed, 289 unchanged (35% of the section changed)

Silicon Laboratories Inc.

is a leading provider of silicon, software and solutions for a smarter, more connected world.

Our award-winning technologies are shaping the future of the Internet of Things (IoT), internet infrastructure, industrial automation, consumer and automotive markets.

Our world-class engineering team creates products focused on performance, energy savings, connectivity and simplicity.

Our primary semiconductor products are mixed-signal integrated circuits (ICs), which are electronic components that convert real-world analog signals into digital signals that electronic products can process.

Our mixed-signal ICs leverage standard complementary metal oxide semiconductor (CMOS), a low cost, widely available process technology.

is a leader in secure, intelligent wireless technology for a more connected world.

Our integrated hardware and software platform, intuitive development tools, industry leading ecosystem and robust support enable customers in building advanced industrial, commercial, home and life applications.

We make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies and improve lives.

We are pioneers in wireless innovation and have spent the last two decades simplifying the complexity of radio frequency (“RF”) from silicon to cloud.

Our leading IoT platform helps customers quickly create secure, intelligent connected devices that solve some of the world’s biggest challenges.

Our team and technology assist customers to build connected devices that measurably solve development challenges, including energy efficiency, economic growth, better health, infrastructure innovation, sustainable cities and responsible production.

Our semiconductor devices leverage standard complementary metal oxide semiconductor (CMOS), a low cost, widely available process technology.

Use of CMOS technology enables smaller, more cost-effective and energy-efficient solutions.

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We provide analog-intensive, mixed-signal solutions for use in a variety of electronic products in a broad range of applications for the IoT including connected home and security, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking and medical instrumentation.

We are a supplier of wireless connectivity solutions for the IoT based on Zigbee®, sub-GHz proprietary technologies, Bluetooth®, Z-Wave®, Thread, and Wi-Fi®.

We are also developing commercial and smart city wireless connectivity solutions using the Wi-SUN open LPWAN protocol.

We provide a wide range of timing and isolation products for infrastructure applications including high-performance clocks and oscillators for networking equipment, data centers, servers and storage, wireless base stations, and automotive applications, as well as digital isolators and current sensors for industrial control and automation, power supplies, electric vehicles, battery management, solar inverters and motor control.

We also provide broadcast products for applications such as TVs, set-top boxes and automotive infotainment systems, and access products including subscriber line interface circuits for voice over IP (VoIP), embedded modems, and Power over Ethernet (PoE) power source equipment and powered device ICs.

We have built a leading wireless development platform and product portfolio for the IoT based on Zigbee®, sub-GHz proprietary technologies, Bluetooth®, Z-Wave®, Thread, and Wi-Fi®.

We have developed a fully integrated, certified Wi-SUN® solution simplifying Low Power Wide Area Network (LPWAN) deployment for smart cities.

We have continued to diversify our product portfolio and introduce new products and solutions through both organic investment and acquisitions.

Mergers and acquisitions are an important part of our growth strategy.

In April 2020, we acquired the Wi-Fi and Bluetooth business of Redpine Signals for approximately $317 million in cash.

We believe the acquisition will accelerate our roadmap for Wi-Fi and Bluetooth silicon and software solutions.

Our products integrate complex mixed-signal functions that are frequently performed by numerous discrete components in competing products into a single chip, chipset or system-on-chip (SoC).

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● Reduce system power requirements enabling smaller form factors and/or longer battery life.

We group our products into the following categories:

● Internet of Things products, which include wireless connectivity, microcontroller (MCU) and sensor products;

● Infrastructure and automotive products, which include timing products (clocks and oscillators);

power products (isolation and PoE devices);

broadcast products (consumer and automotive radio devices);

and access products (VoIP products and embedded modems).

We have combined our previous product groups, Infrastructure, Broadcast and Access, into the Infrastructure and automotive product group.

Prior periods were retrospectively adjusted.

Revenues during fiscal 2021, 2020 and 2019 were generated predominately by sales of our mixed-signal products.

The following table summarizes the diverse product areas and applications for the various products that we have introduced to customers:

Product Areas and Description

Internet of Things Products

Microcontrollers and Wireless Products

We offer a family of products ideally suited to ultra-low power IoT embedded systems that include energy friendly 8-bit mixed-signal microcontrollers, ultra-low power 32-bit microcontroller and wireless MCU connectivity solutions using the ARM® Cortex-M0+/M3/M4 and newer M33 cores.

Wireless Microcontrollers and Sensor Products

Our EFM32™, EFM8™, 8051, wireless MCUs and wireless SoCs are based on numerous wireless protocols, including Zigbee, sub-GHz proprietary, Bluetooth, Z-Wave, Thread and Wi-Fi technologies.

Our family of products are ideally suited to ultra-low power IoT embedded systems that include energy friendly 8-bit mixed-signal microcontrollers, ultra-low power 32-bit microcontroller and wireless MCU connectivity solutions using the ARM® Cortex-M0+/M3/M4 and newer M33 cores.

Single and multi-protocol SoC devices and modules provide flexible, highly integrated solutions designed to meet demanding requirements of IoT applications.

Wireless protocols include Zigbee, sub-GHz proprietary, Bluetooth, Z-Wave, Thread and Wi-Fi technologies.

Our EFM32™, EFM8™, 8051, wireless MCUs and wireless SoCs are supported by Simplicity Studio™, which provides one-click access to design tools, documentation, software and support resources.

In-house protocol stacks and Micrium® real-time operating system (RTOS) help simplify software development for IoT developers by coordinating and prioritizing multiprotocol connectivity, SoC peripherals and other system-level activities.

The introduction of our Series 2 portfolio provides a greater focus on updatable device security which is becoming vital to the evolution and success of IoT.

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Our broad portfolio addresses a variety of target markets, including smart home, commercial (building automation and retail) and industrial (smart energy, factory automation, smart cities).

Our sensor products include optical sensors (proximity, ambient light gestures and heart rate monitoring), as well as relative humidity (RH) / temperature sensors and Hall effect magnetic sensors.

These devices leverage our mixed-signal capability to provide high accuracy, process technology to improve performance and lower power consumption than competing parts.

Our products are supported by Simplicity Studio™, which provides one-click access to design tools, documentation, software and support resources.

- Home automation /security systems

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- Smart appliances

- Smart speaker

- Access control

- HVAC control

- Consumer electronics

- Asset tracking

- Medical instrumentation

Our sensor products include optical sensors (proximity, ambient light gestures and heart rate monitoring), as well as relative humidity (RH) / temperature sensors and Hall effect magnetic sensors.

These devices leverage our mixed-signal capability to provide high accuracy, process technology to improve performance and lower power consumption than competing parts.

- Consumer health & fitness (wearables)

- Smart home sensing

- Industrial controls

- Toys and consumer electronics

- Monitors and lavatory controls

- Consumer medical

Infrastructure and Automotive Products

Timing Devices

Robust demand for bandwidth is driving the deployment of next-generation internet infrastructure equipment to deliver higher speed, higher capacity and more flexible networks.

This transition puts unique requirements on the clocks and oscillators used to provide timing and synchronization for the equipment responsible for switching, transporting, processing and storing network traffic.

To meet this need, we provide low-jitter, frequency-flexible, mass-customizable timing solutions that accelerate development time, minimize cost and improve system reliability.

Our high-performance “clock-tree-on-a-chip” products offer highly integrated single-chip IC solutions for clock synthesis and jitter attenuation, offering superior jitter performance and frequency flexibility for high data rate applications.

- Optical networking

- Switches/routers

- Telecommunications

- Data center

- Servers and storage

- Wireless base stations

- Mobile fronthaul, midhaul and backhaul

- Small cells

- Broadcast video

Product Areas and Description

Isolation Products

Our digital isolation techniques enable customers to deploy more energy efficient power solutions that meet isolation safety standards and solve difficult electronic noise issues.

Systems such as data center servers, cellular base stations, uninterruptable power supplies and electric vehicles require increasingly energy efficient power solutions.

Electric motors used in electric vehicles, pumps, HVAC compressors, fans and automated machinery need more sophisticated and efficient digital controls.

Our isolation technology enables customers to address these demanding requirements.

Products include multi-channel isolators, isolated drivers, isolated power converters and mixed-signal devices that simplify design, improve reliability, minimize noise emissions and reduce system cost.

- Industrial control and automation systems

- Cloud, datacenter and telecom power supplies

- Electric vehicle charging and battery management

- Solar inverters

- Hybrid / Electric automotive drive trains

- High power audio

- Test and measurement equipment

Broadcast Consumer

Our single-chip hybrid TV tuners leverage our proven digital low-IF architecture and support all major analog and digital TV standards, including NTSC, PAL/SECAM, ATSC 1.0/3.0, DVB-T2/T/C2/C, ISDB-T and DTMB, enabling TV makers worldwide to deliver improved picture quality and better reception for both analog and digital broadcasts.

Our single-chip, low-power and high-performance single- and dual-channel digital video demodulators are ideal for customer premises equipment (CPE) receiving DVB-T/T2, DVB-S/S2/S2X, DVB-C/C2 and/or ISDB-T.

Our AM/FM, HD Radio™ and DAB/DAB+ receivers deliver a complete radio solution, from antenna input to audio output, in a single chip.

Our broadcast audio products are based on an innovative digital architecture enabling significant improvements in performance, which translates to a better consumer experience, while reducing system cost and board space for our customers.

- Worldwide 4K/8K UHD TVs and smart TVs

- Free-to-Air (FtA) or pay-TV set-top boxes

- PVR/DVD/Blu-Ray/HDD video recorders

- PC-TV applications

- AM/FM clock radios

- DAB digital radios

- HD Radio digital radios

- Home theater systems

- Portable audio devices

- MP3/digital media players

ProSLIC® Subscriber Line Interface Circuits for VoIP

Our ProSLIC provides the analog subscriber line interface on the source end of the telephone which generates dial tone, busy tone, caller ID and ring signal.

Our offerings are well suited for the market for Voice over IP telephony applications deployed over cable, DSL, optical and wireless fixed terminal networks.

- Voice functionality for cable, DSL and optical digital modems and terminal adapters

- VoIP residential gateways

- Wireless local loop remote access systems

Broadcast Automotive

Our high-performance automotive infotainment solutions include hybrid Software Defined Radio (SDR) tuners, data receivers and digital radio coprocessors that improve the end user experience, reduce system cost, and support all major digital radio standards, including DAB/DAB+, HD Radio and DRM.

Our scalable architecture enables automotive infotainment system suppliers to leverage their investments across multiple product lines ranging from entry-level car radios to cutting-edge multi-tuner, multi-antenna radios for premium vehicles.

- Automotive OEM infotainment systems

- Aftermarket car radios

- Navigation/GPS devices

Product Areas and Description

ISOmodem® Embedded Modems

Our ISOmodem embedded modems leverage innovative silicon direct access arrangement (DAA) technology and a digital signal processor (DSP) to deliver a globally compliant, compact analog modem for embedded applications.

- Fax machines and multi-function printers

- Point of sale (POS) terminals

- Security systems

- Industrial monitoring

- Remote medical monitoring

Power over Ethernet

Our PoE power source equipment and powered device ICs offer highly differentiated solutions with a reduced total bill of materials (BOM) and improved performance and reliability.

Our solutions offer a higher level of integration not available with competing solutions.

- Enterprise networking routers and switches

- Wireless access points (WAP)

- VoIP phones

- POS terminals

- Security cameras

Revenues during fiscal 2020, 2019 and 2018 were generated predominately by sales of our mixed-signal products.

The following summarizes our revenue by product category (in thousands):

Internet of Things

Infrastructure and automotive

The Company has combined its previous product groups, Infrastructure, Broadcast and Access, into the Infrastructure and automotive product group.

Prior periods were retrospectively adjusted.

On April 22, 2021, we entered into an Asset Purchase Agreement pursuant to which Skyworks Solutions, Inc.

agreed to acquire certain assets, rights, and properties, and assume certain liabilities, comprising our infrastructure and automotive business for $2.75 billion in cash.

The transaction closed on July 26, 2021.

See Note 3, Discontinued Operations , to the Consolidated Financial Statements for additional information.

Customers, Sales and Marketing

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Our expertise includes:

● Isolation, which is critical for existing and emerging industrial, hybrid and hybrid-electric applications and telecom networks;

● Frequency synthesis, which is core technology for wireless and clocking applications;

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Due to our diversified product portfolio and the numerous markets and applications we serve, we target a relatively large number of competitors.

We compete with AltoBeam, Analog Devices, Aura, Broadcom, Dialog, Espressif, Infineon, Maxim Integrated Products, MaxLinear, MediaTek, Microchip, Nordic Semiconductor, NXP, Qualcomm, Rafael, Renesas, STMicroelectronics, Synaptics, Telink, Texas Instruments and others.

We compete with Broadcom, Espressif, Infineon, MediaTek, Microchip, Nordic Semiconductor, NXP, Qualcomm, Renesas, STMicroelectronics, Synaptics, Telink, Texas Instruments and others.

We expect to face competition in the future from our current competitors, other manufacturers and designers of semiconductors and start-up semiconductor design companies.

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We believe the development of our company culture, along with competitive compensation, career growth and development opportunities have helped increase employee tenure and reduce voluntary turnover.

During fiscal 2020, our voluntary employee turnover rate was less than 10%.

During fiscal 2021, our voluntary employee turnover rate was approximately 10%.

The health and safety of our employees is of utmost important to us.

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Corporate Social Responsibility

As a global corporate citizen, we are committed to environmental sustainability, operational excellence, and support for people and communities around the world.

We strive to minimize resource use and reduce the environmental impact of our production process by designing smaller and more energy-efficient products, conserving energy and precious resources, and investing in sustainable technologies.

We believe that sharing our success with the community is also a key component of our corporate value to “do the right thing.” Our philanthropy program provides financial, volunteer and in-kind support to organizations that have made a difference in improving the quality of life throughout the world, including those promoting diversity, inclusion and social justice.

As a global corporate citizen, we are committed to environmental sustainability, operational excellence, and providing support for people and communities around the world.

We live by our promise to "do the right thing"

for our employees, customers, shareholders, communities and planet.

We strive to minimize resource use and reduce the environmental impact of our production processes by designing smaller and more energy-efficient products, conserving energy and precious resources, and investing in sustainable technologies and energy conservation practices.

Innovative solutions don’t stop at our products – we are focused on addressing complex community challenges through collaborative, actionable and results-driven programs.

Our philanthropy program provides financial, volunteer and in-kind support to organizations that are solving critical community needs, improving the quality of life, including those promoting diversity, inclusion and social justice, and expanding STEM opportunities for underrepresented groups.

Actions we have taken in pursuit of these commitments include:

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● Prioritized qualified suppliers who are socially and environmentally progressive;

● Demanded excellence in our quality and environmental performance, as demonstrated through our extensive product and process qualification commitments, including ISO 9001 Quality Management System and ISO 14001 Environmental Management System;

● Delivered products that met environmental regulations and requirements;

● Demanded excellence in our quality and environmental management systems, each certified to ISO 9001 and ISO 14001 standards.

Social Programs

● Donated a portion of our annual profits to charitable organizations;

● Provided corporate matching for employee donations to qualified nonprofit organizations;

● Allocated funds to our global sites for grants supporting critical causes locally;

● Provided corporate matching gifts to expand the impact of individual employee donations;

● Offered 24 hours of paid time off per year for employees to volunteer in their communities;

● Signed an open letter to take actions that advance racial justice, denounce racism and commit to real, sustained action and progress.

As part of that effort, we granted $100 thousand to a collaborative nonprofit project that funds five racial justice organizations and provides the infrastructure for advocacy, volunteering and education;

● Provided financial grants to organizations offering STEM education programs for at-risk students;

● Engaged in community service projects in our communities globally and donated to relief efforts when disasters occur.

● Sponsored community service projects and supported relief efforts when disasters occur;

● Partnered with organizations committed to building diverse, equitable, and inclusive environments;

● Provided financial grants to nonprofits offering STEM education programs for underrepresented and underserved groups;

● Supported research to improve safety, sustainability, and overall quality of life in densifying cities.

Governmental Regulations

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business