Skyworks Solutions (SWKS)

Risks

• The effects of the global COVID-19 pandemic continue to adversely affect our business operations.
• The risks of doing business internationally apply to all aspects of our operations.
• We are subject to the risks of doing business in China.
• Our operating results may be adversely affected by quarterly and annual fluctuations and market downturns.
• We rely on a small number of customers for a large portion of our sales.
• We rely on Original Equipment Manufacturers (“OEMs”) and Original Design Manufacturers (“ODMs”) to design our products into their end products.
• Our manufacturing processes are extremely complex, specialized, and subject to disruption.
• We may not be able to maintain and improve manufacturing yields that contribute positively to our gross margin and profitability.
• We are dependent upon third parties for the manufacture, assembly, and testing of our products.
• We are dependent upon third parties for the supply of raw materials and components.
• We may not be able to effectively operate our business if we are unable to attract and retain qualified personnel.
• Our business would be adversely affected by the departure of existing members of our senior management team or if our senior management team is unable to effectively implement our strategy.
• We are subject to uncertainties involving the ordering and shipment of, and payment for, our products.
• We face a risk that capital needed for our business will not be available when we need it.
• We may not achieve the anticipated benefits of the acquisition of the Infrastructure and Automotive business of Silicon Labs.
• We incurred significant indebtedness in connection with the Acquisition, which could reduce our flexibility to operate our business.
• The agreements that govern our indebtedness contain various covenants that impose restrictions that may affect our ability to operate our businesses.
• To be successful we may need to make additional investments and acquisitions, integrate companies we acquire, and/or enter into strategic alliances.
• The semiconductor industry is highly cyclical and subject to significant downturns.
• The wireless communications and analog semiconductor markets are characterized by significant competition.
• Remaining competitive in the semiconductor industry depends upon our ability to constantly innovate.
• Increasingly stringent environmental laws, rules, regulations, and customer expectations may require us to redesign our existing products and processes and could adversely affect our ability to cost-effectively produce our products.
• We may not be able to prevent, or timely detect, information technology security breaches.
• In order to remain competitive, we must be able to successfully protect our intellectual property rights.
• We are subject to the risks of licensing third-party intellectual property.
• We may be subject to warranty claims, product recalls, liability claims, and risks of litigation.
• We may be subject to claims of infringement of third-party intellectual property rights or demands that we license third-party technology.
• Our stock price has been volatile and may fluctuate in the future.
• There can be no assurance that we will continue to declare cash dividends or repurchase our stock.
• Certain provisions in our organizational documents and Delaware law may make it difficult for someone to acquire control of us.