Skyworks Solutions, Inc. (SWKS) and Qualcomm Incorporated (QCOM) are two prominent players in the semiconductor industry. SWKS in Irvine, Calif., designs and manufactures semiconductor products for radiofrequency and mobile communications applications. It serves the aerospace, automotive, broadband, entertainment, and gaming, medical, military, smartphone, and wearable markets. It sells its products through a direct sales force, electronic component distributors, and independent sales representatives. In comparison, San Diego, Calif-based QCOM is a multinational semiconductor and telecommunications equipment company that delivers products and services based on code-division multiple access (CDMA) technology used in digital wireless communications equipment and satellite ground stations. It operates through three segments–Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
Despite the continuing semiconductor chip shortage, surging demand for semiconductor chips across industries with the increasing adoption of advanced technologies has driven a 23% rise in global semiconductor sales in the 2022 first quarter versus the prior-year period. Furthermore, increasing corporate and government investments to ramp up chip production bode well for the industry. The global semiconductor market is expected to grow at a 9.2% CAGR to reach $893.10 billion by 2029. So, both SWKS and QCOM should benefit.
