WOBURN, Mass.—Wireless semiconductor manufacturer Skyworks Solutions Inc. said it is ceasing its baseband operations and will lay off 425 employees.
Skyworks’ baseband business developed reference designs, including digital signal processors and software functionality, for third-tier handset suppliers. The company said the addressable market for its baseband solutions was declining as tier-one manufacturers begin to dominate the space. The company said its baseband business generated a substantial operating loss.
Skyworks said it plans to focus instead on its core business that includes linear products, power amplifiers, front-end modules and radio solutions. The company said its core business revenue has grown an average of 17 percent annually for four years, but losses in its baseband business have masked that growth.
“We began our transition away from developing baseband designs nearly two years ago, but continued to support existing customers with legacy products,” said David Aldrich, president and chief executive officer of Skyworks. “Throughout this timeframe, our portfolio of linear products, ultra-compact power amplifiers, Intera front-end modules and Helios EDGE radios has demonstrated design-win momentum and an accelerating growth trajectory. Accordingly, today we are implementing a strategic restructuring to build upon our leadership franchise and to realize our vision of becoming the global leader in semiconductors enabling mobile connectivity.”
The company said the restructuring will eliminate about $70 million in annual costs and result in charges of between $85 million and $95 million.
