Qorvo(US:QRVO)2021-12-08 16:27Qorvo, Inc. (NASDAQ:QRVO) Barclays 2021 Global TMT Conference Summary Industry Overview - Qorvo operates in the semiconductor industry, focusing on radio frequency (RF) solutions for various applications including smartphones, IoT, automotive, and defense [3][4][5]. Key Points and Arguments Market Position and Growth - Qorvo is a global leader in 5G technology, projecting RF content growth across smartphone OEMs for multiple years [3]. - The company is expanding its market exposure beyond smartphones to include IoT applications and ultra-low latency applications such as automotive and AR/VR [4]. - Qorvo's infrastructure segment is benefiting from early 5G deployments, with a strong portfolio of high-performance GNPAs and small signal devices [5]. Capital Allocation and Investments - Qorvo has maintained a balanced and disciplined approach to capital allocation, investing in power capabilities, advanced switches, sensors, and Ultra Wideband technology [6]. - The company expects these investments to contribute materially over time, with a focus on next-generation devices launching in 2022 [6]. Supply Chain and Market Dynamics - Qorvo anticipates supply and demand imbalances to moderate through the March quarter, with improvements expected in 2022 [6]. - The company is addressing supply chain challenges, particularly in silicon and power management components, while seeing improvements in capacity [22][23]. 5G Market Outlook - The total addressable market (TAM) for mobile RF is expected to grow significantly, with projections of over 500 million 5G units in 2022 and continued growth beyond that [25]. - Qorvo sees opportunities in the Android ecosystem as it adopts 5G technology, with significant growth expected from Samsung and Honor [25][27]. Ultra Wideband (UWB) Technology - Qorvo identifies UWB as a significant growth opportunity, with a projected TAM exceeding $1 billion by 2024 [49]. - The technology is already integrated into the iOS ecosystem and is beginning to roll out in Android devices, with applications in IoT and automotive sectors [50]. IDP Segment Growth - The Infrastructure and Defense (IDP) segment is expected to grow double digits, driven by demand for gallium nitride (GaN) modules and WiFi technology [36][38]. - Qorvo's strategy includes expanding its low-power wireless business and enhancing power management solutions through acquisitions [37][38]. Acquisitions and Future Strategy - Qorvo has made $1.6 billion in acquisitions while also repurchasing $1.6 billion in stock, maintaining a balanced capital allocation strategy [40]. - The company is focused on ensuring that acquisitions meet or exceed expectations, with several expected to contribute significantly to revenue in the coming years [41][44]. Additional Important Insights - Qorvo emphasizes the importance of long-term agreements with customers and suppliers to mitigate risks and enhance relationships [19][20]. - The company is confident in its market position, asserting that it is not losing market share despite competition from companies like Qualcomm [16][17]. - Qorvo's focus on improving filter performance and integrating advanced technologies positions it well for future growth in complex mobile applications [10][33].