Starboard ended up with Skyworks exposure via Skyworks' purchase of Qorvo and, according to people familiar with the situation who asked not to be named, it backed the tie-up while agitating at Qorvo. Those people say Starboard thinks the combined company can deliver if it hits its merger targets and that the stock still looks undervalued after the deal closed this month.
They also point to complementary product lines as a reason the merged business has room to grow. Smith is expected to talk about the investment at the 13D Monitor Active-Passive Investor Summit on Oct. 20 in New York, where he is the headliner.
People familiar with Starboard's view say the transaction includes a goal of at least $500 million in yearly cost savings within three years. They add that investors have not fully reflected those savings in the price, nor management's separate outlook for operating margins between 30% and 35% in the next two to three years.
Starboard first built its Qorvo position in 2025 and pressed for better operations. To sidestep a proxy battle, Qorvo consented to place Peter Feld, Starboard's managing member and head of research, on its board.
Two directors Starboard helped install at Qorvo now sit on the Skyworks board: Chris Koopmans, president of Marvell Technology Inc., and Rick Clemmer, former CEO of NXP Semiconductors.
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Skyworks agreed last year to buy Qorvo in a transaction that valued the combined entity at roughly $22 billion, as both chipmakers dealt with slower growth after Apple moved to swap third-party parts for its own. The companies make small communication chips used in smartphones and in other areas including data centers and fighter jets.
On Friday, Skyworks rose 0.8% to close at 79.70 dollars in New York, for a market capitalization near 18.7 billion dollars. The stock is up about 4.7% over the past 12 months. A Skyworks representative did not provide comment right away when asked.
Bloomberg Intelligence data show Starboard has targeted some of the largest companies, recently taking a fresh position in Shake Shack Inc., and remains engaged with Dynatrace Inc., CarMax Inc., and Lamb Weston Holdings Inc.
If the company captures the planned cost savings and approaches the margin range management outlined, earnings power could look very different in a couple of years. The flip side is execution risk on integration and end demand tied to major customers. Watch for updates on synergy run-rates, progress on margins, and any commentary from Smith's Oct. 20 appearance.
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