Peter Tang

Peter Tang sought clarification on the mix driving better-than-expected content at Skyworks' largest customer, asking if it was primarily due to the mix within the current generation or a better mix of prior generation models. He also asked for a characterization of the broad markets business.

Answer

Phil Brace, CEO and President of Skyworks, stated that the improved results were 'all of the above,' encompassing better units, better mix, and better content, all factored into the guidance. Regarding broad markets, Rajvindra Gill, VP of Investor Relations, explained that broad markets are guided up slightly sequentially and mid-to-high single digits year-over-year, with growth led by strong Wi-Fi 7 adoption, a record automotive business ($65 million/quarter run rate), and recovery in data center/infrastructure due to inventory rebuilds and 800G timing design wins. All three segments are growing, with some expected seasonality.

Peter Tang asked for clarification on the mix at Skyworks' largest customer, specifically whether the better-than-expected content was driven by the mix within the current generation or a better mix of prior generation models. He also inquired about the growth drivers within the broad markets business, which has seen seven consecutive quarters of growth, asking which of the three main buckets (auto, infrastructure, consumer IoT) are back to normal growth and which are still below trendline.

Answer

Phil Brace, CEO and President, stated that the improved results at the largest customer were due to 'all of the above' – better units, better mix, and better content. Rajvindra Gill, Vice President of Investor Relations, explained that broad markets growth is led by strong Wi-Fi 7 adoption, a record automotive business run rate ($65 million per quarter), and a recovery in data center and infrastructure with new 800G design wins. All three segments are growing, with some expected seasonality.