Skyworks Solutions, Inc. (NASDAQ:SWKS) Q3 2023 Earnings Call Transcript

Liam Griffin : Sure, Chris. Yes. I mean we do feel that the bottom is here but most of the markets here that we address, and we should be seeing improving financials as we go forward. And if you look at our guide today, it’s pretty strong relative to the peers. But also the aperture that we have, not only with the larger players in mobile, which is certainly important, and we’re very well positioned. But the broad markets business continues to grow. We’re doing a lot of good work in automotive. We’re doing a lot of good work in data center, a wide range of customers that are engaged with us that are also going through their cycle. But what we’re seeing now is a bit of a turn up. We think it’s sustainable. I think it’s been a tough cycle in semis and tech in general. But our view is a little bit more optimistic now than it was last quarter for sure.

Chris Caso : Okay. And just a follow-up on perhaps, China, specifically, and that’s an area where we’ve heard some more cautious commentary from one of your peer — from some of your peers. Do you think that demand from your China customers has also turned the corner? And what should we expect there? What are you seeing now? And what should you expect there?

Liam Griffin : Yes. It’s starting to turn up, Chris. It’s not where we want it to be yet, but we’ve been very, very careful the way we’re guiding and have and put kind of pretty low vectors on top line. So I don’t think that we’re going to be surprised at all in any way. So you look at that portfolio, it’s still bumpy. But on the flip side, you have other markets in Android that are doing quite well. Samsung has an opportunity to continue to grow. You’ve got a few other players out there that are important. Google is another customer has a lot of great opportunity in mobile and other products that we work with. But it does, like I said, it feels like what we’re seeing and the dialogue we have with our end customers being more constructive.

Operator: And your next question comes from the line of Matt Ramsay from TD Cohen.

Matt Ramsay : Yes. maybe you could — you guys report, obviously, the broad markets business and — but there’s a bunch of different end markets represented in there that I would imagine are seeing one thing I think the semiconductor cycle that you were speaking about has taught us is that different parts of the industry have different cycles that are not in amplitude or X, Y axes trying to be lined up with each other, and they’re all over the place a bit. So maybe you could break down what you’re seeing in the broad markets business. I would assume maybe stronger in automotive, weaker in some consumer areas. But if you could go through the different subsectors, that would be really, really helpful.

Liam Griffin : Yes, sure. I’ll give you as much as I can on that. So you mentioned automotive. That’s a market that if you look back two, three years ago at Skyworks, you’d see very, very little revenue at all. We’re — now we’re well above the $200 million run rate. We expect that to accelerate substantially, a lot of great IP and technology that we brought forth with the Silicon Labs transaction. And also a lot of really organic work inside of Skyworks to drive more opportunities within these vehicles. So that’s going to be an important part of the business. It already is. If we look at some of these other new markets, cloud, for example, we’ve got design wins in that area now. We’re doing extremely well in an important category in Wi-Fi 6 and Wi-Fi 7.