Skyworks pares its reliance on Apple

Skyworks is paying $2.75 billion to diversify its business away from Apple Inc. Wall Street thinks the chip maker is getting a bargain.

Skyworks, which specializes in radio-frequency chips that filter out interference for smartphones and other wireless devices, is spending that much in cash to acquire the infrastructure and automotive business from Silicon Laboratories. The deal will give Skyworks more exposure to such hot markets as electric vehicles, 5G equipment and data centers. It will also lessen its exposure to smartphones—and Apple in particular. The tech titan accounted for 56% of Skyworks’ revenue for the fiscal year ended Oct. 2.