SWKS-PMCS Barron's article


There are two areas where we believe Skyworks can scale certain PMC-Sierra intellectual properties (IPs): 1) OTN; and 2) SAS I/O controllers. Regarding OTN, we note that PMC-Sierra maintained that the market was a duopoly with respect to the signal processors and that Huawei was the main competitor, though was finding it difficult to compete outside of China. PMC-Sierra management has gone so far as to imply there could be some sort of creative pact at some point down the road given Huawei’s likely inability to maintain pace of investment with PMC-Sierra while being limited to the China market. Thus, we believe there is meaningful potential in Skyworks’ revenue-synergy commentary on international accounts, and specifically Huawei (ZTE [of China] and Ericsson ( ERIC ) also mentioned).

As others are, I’m trying to figure out the overlap with INFN business.


All I can say is NEVER buy anything from Huawei. They stole Cisco’s IP and you should never trust a Chinese company with your computer or network! That is why they are having a hard time in the US. If I ran a data center, I would not take their equipment for free.