Skyworks Solutions, Inc., together with its consolidated subsidiaries (“Skyworks” or the “Company”), is empowering the wireless networking revolution.
−Removed: The Company’s highly innovative analog semiconductors are connecting people, places, and things, spanning a number of new and previously unimagined applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets.
+Added: The Company’s highly innovative analog and mixed-signal semiconductors are connecting people, places, and things, spanning a number of new and previously unimagined applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearable markets.
+Added: Over the past two decades, Skyworks has made critical investments to power this connectivity transformation, addressing key network technologies from cellular to advanced Wi-Fi ® , enhanced GPS, and Bluetooth ® , among others.
+Added: Capitalizing on both organic growth and strategic acquisitions, we are gaining momentum in high-growth verticals, while at the same time, diversifying our revenue and customer set.
+Added: In July 2021, we acquired the Infrastructure and Automotive business of Silicon Laboratories Inc.
+Added: (the “Acquisition”).
+Added: The Acquisition has accelerated our expansion into high-growth market segments, including electric and hybrid vehicles, industrial and motor control, power supply, 5G wireless infrastructure, optical data communication, data center, automotive, smart home, and several other applications.
Our key customers include Amazon, Apple Inc.
−Removed: (“Apple”), Arris, Bose, Cisco, DJI, Ericsson, Foxconn, Garmin, Gemalto (a Thales company), General Electric, Fibocom, Google, Honeywell, Itron, Lenovo, LG Electronics, Microsoft, Motorola, Netgear, Northrop Grumman, OPPO, Rockwell Collins, Samsung, Sierra Wireless, Sonos, Technicolor, VIVO, Xiaomi, and ZTE.
−Removed: Our competitors include Analog Devices, Broadcom, Cirrus Logic, Murata Manufacturing, NXP Semiconductors, Qorvo, and Qualcomm.
+Added: (“Apple”), Arcadyan, Arris, Bose, Cisco, DJI, Ericsson, Garmin, Gemalto (a Thales company), General Electric, Fibocom, Google, Honeywell, Itron, Lenovo, LG Electronics, Microsoft, Motorola, NETGEAR, Nokia, Northrop Grumman, OPPO, Rockwell Collins, Sagemcom, Samsung, Sierra Wireless, Sonos, Sony, Technicolor, Telit, VIVO, Xiaomi, and ZTE.
+Added: Our competitors include Analog Devices, Broadcom, Cirrus Logic, Murata Manufacturing, NXP Semiconductors, Qorvo, Qualcomm, and Texas Instruments.
We operate worldwide with engineering, manufacturing, sales, and service facilities throughout Asia, Europe, and North America.
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Our SEC filings are also available to the public at www.sec.gov.
−Removed: In July 2021, we acquired the Infrastructure and Automotive business of Silicon Laboratories Inc.
−Removed: (the “Acquisition”).
−Removed: The Acquisition accelerates our expansion into high-growth market segments, including electric and hybrid vehicles, industrial and motor control, power supply, 5G wireless infrastructure, optical data communication, data center, automotive, smart home, and several other applications.
Industry Background
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Most of the world’s largest economies are implementing commercial 5G networks, and the world’s leading smartphone manufacturers have launched multiple generations of 5G-enabled devices.
−Removed: Concurrently, connectivity is rapidly expanding into an adjacent set of IoT markets, rapidly proliferating the number of connected devices.
−Removed: ABI Research IoT Market Tracker forecasts 23 billion IoT connections by 2026.
−Removed: We are enabling these opportunities with highly customized solutions supporting a broad set of wireless systems and protocols including cellular, 5G, Wi-Fi ® , GPS, Bluetooth ® , Accutime™, HD-Radio™, LoRa ® , Thread ® , and Zigbee ® .
+Added: We see a continued expansion in data consumption, dependent on seamless, reliable, and ubiquitous wireless connectivity.
+Added: A few statistics illustrate this point.
+Added: According to the 2021 Ericsson Mobility Report, global wireless data traffic is expected to grow at a 27% annual rate over the next five years.
+Added: Machine-to-machine connections, the fastest-growing IoT category, is expected to soon surpass 15 billion devices.
+Added: By 2030, we expect there will be 650 million connected cars worldwide, each consuming 25 times the data that we see in today’s smartphones.
+Added: We are helping to enable these opportunities with highly customized solutions supporting a broad set of wireless systems and protocols including cellular, 5G, Wi-Fi, GPS, Bluetooth, Accutime™, HD-Radio™, LoRa®, Thread®, and Zigbee®.
In addition, next-generation Wi-Fi 6 and 6E products are emerging as the standard offering across enterprise, carrier, and retail segments and are expected to accelerate the deployment of IoT devices.
Looking forward, we see significant growth opportunities for our industry and for Skyworks.
−Removed: The key catalysts are the increasing demand for wireless data and the profitable usage model, as each connection becomes more valuable and the world embraces 5G and other advanced connectivity technologies.
+Added: The key catalyst is the increasing demand for wireless data as the world embraces 5G and other advanced connectivity technologies.
Solving Connectivity Challenges
−Removed: Highly integrated semiconductor solutions are playing an increasingly essential and pivotal role in the deployment of next generation standards by resolving the daunting analog and RF complexities that are challenging the capabilities of existing hardware and the supporting network infrastructure.
+Added: Highly integrated semiconductor solutions are playing an increasingly essential and pivotal role in the deployment of next-generation standards by resolving the daunting analog, mixed-signal, and RF complexities that are challenging the capabilities of existing hardware and the supporting network infrastructure.
Delivering on these design challenges requires broad competencies including signal transmission and conditioning, the ability to ensure seamless hand-offs between multiple standards, power management, voltage regulation, battery charging, advanced filtering, and tuning.
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Customer Relationships
−Removed: Given our scale and technology leadership, we are engaged with all of the major original equipment manufacturers (“OEMs”), smartphone providers, and baseband reference design partners.
−Removed: Our customers value the scale of our global supply chain, our innovative technology, and our system engineering expertise, resulting in deep customer loyalty.
+Added: Given our scale and technology leadership, we are engaged with all of the major original equipment manufacturers (“OEMs”), smartphone providers, and baseband reference design partners in the analog and mixed-signal semiconductor industry.
+Added: Our customers value the scale of our global supply chain, our innovative technology, our ability to curate and deliver unique solutions, and our system engineering expertise, resulting in deep customer loyalty.
We partner with our customers to support their long-term product road maps and are valued as a system solutions provider rather than just a point product vendor.
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We are diversifying our business by expanding our addressable markets and broadening our product portfolio to reach a wider array of global customers.
−Removed: With the increasing adoption of 5G and the opportunity to enable more applications, we are growing our business beyond mobile devices (where we support all top-tier manufacturers, including the leading smartphone suppliers and key baseband vendors) into additional high-performance analog markets, including automotive, home and factory automation, data center, electric and hybrid vehicles, solar, wireless infrastructure, aerospace and defense, medical, smart energy, and wireless networking.
−Removed: In these markets we leverage our scale, intellectual property, and worldwide distribution network, which spans over 6,000 customers and over 3,000 analog components.
+Added: With the increasing adoption of 5G and the opportunity to enable more applications, we are growing our business beyond mobile devices (where we support all top-tier manufacturers, including the leading smartphone suppliers and key baseband vendors) into additional high-performance analog markets, including automotive, home and factory automation, data center, solar, wireless infrastructure, aerospace and defense, medical, smart energy, and wireless networking.
+Added: In these markets we leverage our scale, intellectual property, and worldwide distribution network, which spans more than 6,000 customers and 7,600 unique products.
Delivering Operational Excellence
−Removed: We vertically integrate our supply chain where we can differentiate with highly specialized internal manufacturing capabilities or enter into alliances and strategic relationships for leading-edge technologies.
−Removed: This hybrid manufacturing model allows us to better balance our manufacturing capacity with the demand of the marketplace.
−Removed: Our internal capacity utilization remains high, resulting in stable gross margins and strong return on invested capital on a broader range of revenue.
+Added: We vertically integrate our supply chain where we can differentiate ourselves with highly specialized internal manufacturing capabilities or enter into alliances and strategic relationships for leading-edge technologies.
+Added: This hybrid manufacturing model allows us to better balance our manufacturing capacity with the demand of the marketplace, resulting in a strong return on invested capital on a broader range of revenue.
Additionally, we continue to drive reductions in product design and manufacturing cycle times and further improve product yields.
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Accountability is paramount, and we compensate our employees through a pay-for-performance methodology.
−Removed: We strive to be an employer-of-choice among peer companies and have created a work environment in which turnover is below geographic and industry averages.
−Removed: Generating Superior Operating Results and Shareholder Returns
−Removed: We believe our manufacturing scale, broad product portfolio, strong profitability, and consistent cash flow generation position us to provide superior results and strong returns to our shareholders.
+Added: Generating Superior Operating Results and Stockholder Returns
+Added: We believe our manufacturing scale, broad product portfolio, strong profitability, and consistent cash flow generation position us to provide superior results and strong returns to our stockholders.
Our Product Portfolio
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A small number of OEMs historically has accounted for a significant portion of our net revenue.
−Removed: In the fiscal years ended October 1, 2021 (“fiscal 2021”), October 2, 2020 (“fiscal 2020”), and September 27, 2019 (“fiscal 2019”), Apple, through sales to multiple distributors and contract manufacturers for multiple applications including smartphones, tablets, desktop and notebook computers, watches, and other devices, constituted more than ten percent of our net revenue.
+Added: In the fiscal years ended September 30, 2022 (“fiscal 2022”), October 1, 2021 (“fiscal 2021”), and October 2, 2020 (“fiscal 2020”), Apple, through sales to multiple distributors and contract manufacturers for multiple applications including smartphones, tablets, desktop and notebook computers, watches, and other devices, constituted more than ten percent of our net revenue.
For further information regarding customer concentrations, see Note 15 to Item 8 of this Annual Report on Form 10-K.
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The competitive environment in the semiconductor industry is in a constant state of flux, with new products continually emerging and existing products approaching technological obsolescence.
−Removed: We compete on the basis of time-to-market, new product innovation, quality, performance, price, compliance with industry standards, strategic relationships with customers and baseband vendors, personnel, and protection of our intellectual property.
−Removed: We participate in highly competitive markets against numerous competitors that may be able to adapt more quickly than we can to new or emerging technologies and changes in customer requirements, or may be able to devote greater resources to the development, promotion, and sale of their products than we can.
+Added: We compete on the basis of time-to-market, new
+Added: product innovation, quality, performance, price, compliance with industry standards, strategic relationships with customers and baseband vendors, personnel, and protection of our intellectual property.
+Added: We participate in highly competitive markets against numerous competitors that may be able to adapt more quickly to new or emerging technologies and changes in customer requirements, or may be able to devote greater resources to the development, promotion, and sale of their products.
Research and Development
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We believe that our operations and facilities comply in all material respects with applicable environmental laws and worker health and safety laws.
−Removed: Our efforts to comply with environmental laws and worker health and safety laws (including laws or regulations promulgated in response to the ongoing COVID-19 pandemic, as discussed below in Item 1A, Risk Factors) could have material impacts on our capital expenditures, competitive position, or financial condition, though the magnitude and duration of such impacts are uncertain and difficult to quantify.
+Added: Our efforts to comply with environmental laws and worker health and safety laws could have material impacts on our capital expenditures, competitive position, or financial condition, though the magnitude and duration of such impacts are uncertain and difficult to quantify.
We are also subject to import/export controls, tariffs, and other trade-related regulations and restrictions in the countries in which we have operations or otherwise do business.
−Removed: These controls, tariffs, regulations, and restrictions (including those related to, or affected by, United States-China relations, as discussed below in Item 1A, Risk Factors) have had, and we believe may continue to have, a material impact on our business, including our ability to sell products and to manufacture or source components.
+Added: These controls, tariffs, regulations, and restrictions (including those discussed below in Item 1A, Risk Factors) have had, and we believe may continue to have, a material impact on our business, including our ability to sell products and to manufacture or source components.
Government regulations are subject to change in the future, and accordingly we are unable to assess the possible effect of compliance with future requirements or whether our compliance with such regulations will materially impact our business, results of operations, or financial condition.
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Our workforce consists of approximately 11,150 employees located around the world, more than 99% of whom are full-time employees.
−Removed: As of October 1, 2021:
+Added: As of September 30, 2022:
• Our workforce was distributed geographically approximately as follows:
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• Approximately 4,100 of our employees in Mexico, 290 of our employees in Singapore, and 460 of our employees in Japan were covered by collective bargaining and other union agreements.
−Removed: In managing our business, we focus on attracting and retaining employees by providing compensation and benefits packages that are competitive within the applicable market, taking into account the job position’s location and responsibilities.
−Removed: Nearly all full-time employees across the globe are eligible to participate in one of the Company’s incentive plans, under which payments are tied to pre-established performance goals.
−Removed: In addition, we believe that developing our employees’ skillsets and decision-making abilities—through challenging project assignments, formal training, mentorship, and recognition—is key not only to our employees’ job satisfaction and our retention efforts, but also to maintaining a strong leadership pipeline.
+Added: We focus on attracting and retaining employees by providing compensation and benefits packages that are competitive within the applicable market for each position.
+Added: Nearly all full-time employees across the globe are eligible to participate in one of the Company’s incentive plans, under which payments are tied to pre-established performance goals, as well as to purchase shares of the Company’s common stock at a discount from its market price pursuant to the Company’s employee stock purchase plans.
+Added: In addition, we believe that developing our employees’ skill sets and decision-making abilities—through challenging project assignments, formal training, mentorship, and recognition—is key not only to our employees’ job satisfaction and our retention efforts, but also to maintaining a strong leadership pipeline.
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.