Irvine, Calif.-based radio-frequency (RF) semiconductor maker Skyworks Solutions Inc. is buying the infrastructure and automotive business Silicon Laboratories Inc. for $2.75 billion. We assigned a 'BBB-' issuer credit rating to Skyworks. The stable outlook reflects good cushion within the rating to absorb operating volatility and future acquisitions, as well as the company's commitment to debt repayment and maintaining an investment-grade rating. In addition to the technical hurdles in replacing the RF supply chain, we note most Apple suppliers we rate have good relationships with the firm. We believe Apple aims to differentiate its ecosystem and user experience and that it is happy to source components externally as long as quality meets its specifications. We also note Skyworks' increasing diversification with
