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Skyworks-SMC Connected Home Solutions

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Leading semiconductor manufacturer Skyworks Solutions Inc. (SWKS) recently collaborated with SMC Networks, a premier equipment manufacturer for multi-service operators (MSOs), to develop smart solutions for the connected home market. These include wireless connectivity solutions for security, monitoring and automation (SMA) applications such as security sensors, smoke alarms, motion detectors and touch pads.

The strategic collaboration of an industry leader like Skyworks with SMC Networks stems from the fact that SMA applications are being rapidly deployed on a full-scale across the U.S. and Canada. Moving forward, the partnership aims to create platforms that integrate seamlessly with existing security systems and devices, and are easy to install to enable MSOs augment their revenues.  

Independent studies by market analyst companies ABI and Berg Insight predict that aggregate revenue from smart metering, home automation and home energy management segment is likely to reach $44 billion in 2016. The observation comes as a fresh lease of life for Skyworks, which is bearing the brunt of continuous price wars and intense competition from its rivals as the industry faces a booming demand for technologically advanced products.   

Skyworks designs, manufactures and markets a broad range of high performance analog and mixed signal semiconductors that enable wireless connectivity. The company’s products include power amplifiers (PAs), front-end modules (FEMs), RF sub-systems and cellular systems. Leveraging its core analog technologies, the company also offers a diverse portfolio of linear integrated circuits (ICs) that support automotive, broadband, cellular infrastructure, industrial and medical applications.

Moving forward, Skyworks intends to capitalize on three business segments − mobile Internet, vertical markets and analog components. Demand for mobile Internet applications is on the rise with the broad proliferation of smartphones, net books, note books, and other forms of embedded wireless devices. Skyworks expects to consolidate its position in the mobile Internet spectrum with a broad array of products that covers everything from net books and data cards to smartphones, and even entry-level handsets.

Skyworks presently carries a Zacks Rank #3 (Hold). Other players in the industry worth reckoning include Marvell Technology Group Ltd. (MRVL), NeoPhotonics Corporation (NPTN) and Anadigics, Inc. (ANAD), each carrying a Zacks Rank #2 (Buy).

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