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The Federal Trade Commission has thrown a regulatory wrench into the semiconductor industry’s latest blockbuster: FTC $22B Chip Giant merger suit has effectively paused the planned union of U.S. rivals Skyworks Solutions Inc. and Qorvo Inc., a deal that would have created a $22 billion powerhouse in radio frequency and analog semiconductors.

In filings with the U.S. Securities and Exchange Commission on Thursday, both companies disclosed they received a “second request” from the FTC — a move that suspends the standard 30-day merger review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Second Request Extends Scrutiny

The issuance of the second requests extends the HSR waiting period until 30 days after both companies have substantially complied, unless the parties agree to an earlier termination or the FTC acts sooner, Qorvo noted. Both companies said they are cooperating fully with the antitrust agency.

Qorvo also cautioned that the deal faces scrutiny from international regulators, highlighting the global ripple effects of semiconductor consolidation.

Termination Fees Could Hit Hundreds of Millions

The filings revealed financial stakes if the merger collapses. Skyworks and Qorvo outlined a $298.7 million termination fee should either company back out for a superior proposal or a board recommendation change. In addition, Skyworks must pay Qorvo $100 million if regulatory or antitrust actions block the deal.

“The parties remain committed to working through the regulatory process,” Qorvo said, noting that the transaction still requires shareholder and global antitrust approvals.

Creating a Semiconductor Titan

Announced in late October, the cash-and-stock deal would combine two of the largest U.S. suppliers of radio frequency components, including those used in Apple smartphones. Under the terms, Qorvo shareholders would receive $32.50 in cash plus 0.96 shares of Skyworks stock per share, leaving Skyworks shareholders with roughly 63% of the merged entity.

Both boards have unanimously approved the merger, which is expected to close in early 2027, assuming regulatory and shareholder approvals are met.

Industry analysts note that the combination of Skyworks and Qorvo would consolidate key technologies in high-performance analog and mixed-signal semiconductors, potentially reshaping the global chip landscape — but now the FTC’s probe has put the brakes on the timetable.