Core Viewpoint - The company, 康希通信科技 (Shanghai) Co., Ltd., and its subsidiary GRAND CHIP LABS, INC. have not violated Section 337 of the Tariff Act of 1930, as per the preliminary ruling by the ITC administrative judge, thus not infringing on Skyworks' patents [2][4][5]. Group 1: Case Background - The case is currently at the stage of the ITC's preliminary ruling regarding a Section 337 investigation initiated by Skyworks Solutions, Inc. and its affiliates, claiming patent infringement related to specific RF front-end modules (FEMS) [2][3]. - Skyworks filed a lawsuit in May 2024 against 康希通信科技 (Shanghai) Co., Ltd. and GRAND CHIP LABS, INC. for patent infringement, which led to the initiation of the ITC investigation in July 2024 [2][3]. Group 2: Preliminary Ruling Results - On January 24, 2026, the ITC administrative judge issued a preliminary ruling stating that 康希通信科技 (Shanghai) Co., Ltd. and GRAND CHIP LABS, INC. did not infringe on two of Skyworks' patents (US 9,917,563 and US 8,717,101) [4]. - Three other patents (US 9,450,579, US 9,148,194, and US 7,409,200) were withdrawn by Skyworks during the evidence disclosure phase, leading to their termination in the investigation [4][5]. Group 3: Company Response and Impact - The company emphasizes its commitment to intellectual property management and protection, maintaining a complete intellectual property system and conducting thorough IP checks before technology implementation [6][7]. - The favorable preliminary ruling is seen as a significant legal support for the company's product exports to the U.S. market, although both parties retain the right to request a review within the statutory period [7].

Core Viewpoint - The announcement by Kangxi Communication indicates that its subsidiary, Kangxi Communication Technology (Shanghai) Co., Ltd., and GRANDCHIPLABS, INC. have not infringed on the patent rights of Skyworks, a leading RF chip company [1] Summary by Relevant Sections - **Patent Infringement Case**: In 2024, Skyworks filed a complaint with the U.S. International Trade Commission, alleging that Kangxi Communication's subsidiaries manufactured and exported specific RF front-end modules that infringed on five of its patents [1]

Core Viewpoint - On January 25, 2026, Kangxi Communication announced that its subsidiary, Kangxi Communication Technology (Shanghai) Co., Ltd., GRANDCHIPLABS, INC., and related enterprises did not infringe on Skyworks' patent rights according to the preliminary ruling by the U.S. International Trade Commission [1] Group 1 - Skyworks, a leading company in the RF chip industry, filed an investigation request with the U.S. International Trade Commission in 2024, claiming that Kangxi Communication's subsidiary and related companies manufactured and exported specific RF front-end modules and downstream products that infringed on five of its patents [1]

Core Viewpoint - In 2024, Skyworks filed a lawsuit against the company's subsidiary for patent infringement in the U.S. District Court for the Central District of California and also requested an investigation from the ITC under the Tariff Act of 1930 [1] Group 1 - On January 24, 2026, the company learned that the ITC administrative law judge issued a preliminary ruling stating that its subsidiary, Kangxi Communication Technology (Shanghai) Co., Ltd., GRANDCHIPLABS, INC., and related entities did not violate Section 337 of the Tariff Act of 1930 and did not infringe on two of Skyworks' patents [1] - Additionally, three other patents have been terminated from investigation [1] - The preliminary ruling is favorable for the company, but the case will proceed to ITC administrative review and final ruling stages [1]

Core Insights - LuminArx Capital Management has announced a new lending partnership with SkyWorks Holdings to establish SkyLight Aero Finance Holdings DAC, aimed at providing secured debt solutions to the global commercial aviation market [1] - SkyLight plans to underwrite up to $1 billion in loans and finance leases secured by commercial aircraft and engines [1] Company Overview - The partnership leverages SkyWorks' extensive knowledge of the aviation industry, indicating a strategic alignment to enhance financing options within the sector [1]

Core Insights - Vulcan Value Partners reported positive results across all its investment strategies for Q4 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the All-Cap Composite returning 1.3% in Q4 and 10.7% YTD, despite overvalued markets [1] Group 1: Investment Performance - The Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD, while the Focus Composite (Net) and Focus Plus Composite (Net) both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively [1] - The firm improved its price-to-value ratios while prioritizing safety and long-term gains over short-term performance [1] Group 2: Market Context - The current market situation is compared to the late 1990s dot-com bubble, where high valuations led to a crash, and today's AI disruptions are seen as potentially mirroring that pattern [1] - Investors are at risk of overpaying for promising businesses, prompting the firm to adhere to its investment discipline [1] Group 3: Company Focus - Skyworks Solutions, Inc. - Vulcan Value Partners exited its holdings in Skyworks Solutions, Inc. from its Large Cap and All Cap Strategies during Q4 2025, with the stock trading between $47.93 and $93.33 over the past 52 weeks [2] - Skyworks Solutions, Inc. has a market capitalization of $8.946 billion, and its shares experienced a one-month return of -7.07% and a three-month loss of 19.41% [2] Group 4: Industry Insights - Skyworks Solutions, Inc. is a leading designer and manufacturer of semiconductors for wireless communications, with approximately two-thirds of its revenue coming from smartphones [3] - The growth in the semiconductor industry is driven by an increasing number of wireless devices and higher RF content per device, with demand for higher data throughput and smaller chips [3] - Vulcan Value Partners sold Skyworks to capitalize on more discounted opportunities but continues to monitor the business closely, especially in light of Skyworks' bid for Qorvo, which the firm still holds due to its more favorable valuation [3]

Core Insights - The article discusses the challenges faced by companies in managing excess inventory, particularly in the semiconductor industry, highlighting the financial burden of storage and capital costs associated with unsold materials [1] - It emphasizes the services provided by a company called "Chip Superman," which has successfully served 22,000 users and offers rapid inventory clearance solutions [2][10] - The article lists various semiconductor components available for sale at discounted prices, indicating a significant inventory of over 50 million chips valued at over 100 million [9] Group 1: Inventory Management - Companies are facing substantial costs due to excess inventory, with monthly storage and capital costs amounting to at least 5,000, leading to potential losses of 30,000 after six months [1] - There is a need for effective promotion strategies for unsold materials to mitigate financial losses [1] Group 2: Services Offered - "Chip Superman" has a robust operational capacity with a 1,600 square meter smart storage facility, housing over 1,000 different models and 100 brands of chips [9] - The company guarantees quality control (QC) for each component, ensuring reliability for customers [9] Group 3: Sales and Discounts - The article highlights a range of semiconductor components available for sale, including various models from brands like MICRON, SAMSUNG, and INFINEON, with quantities ranging from thousands to millions [5][6] - The company is actively promoting discounted sales to clear inventory, with transactions completed in as little as half a day [2][10]

Core Viewpoint - Skyworks Solutions, Inc. will host a conference call on February 3, 2026, to discuss its first quarter fiscal 2026 results and business outlook [1][10]. Group 1: Earnings Release and Conference Call Details - The earnings press release will be issued after the market closes on February 3, 2026, and will be available on GlobeNewswire and Skyworks' website [2]. - The conference call can be accessed through the investor relations section of Skyworks' website, with a playback available starting at 9 p.m. EST on the same day [3]. Group 2: Company Overview - Skyworks Solutions, Inc. specializes in high-performance analog and mixed-signal semiconductors, facilitating connections across various applications including aerospace, automotive, and wireless networking [4]. - The company operates globally with facilities in Asia, Europe, and North America and is a member of the S&P 500 index [5].

Group 1 - The core viewpoint of the article is that semiconductor revenue from AI applications is expected to grow significantly, from $220 billion in 2025 to over $550 billion by 2028, according to RBC Capital Markets [1] - Current market supply is tight, with enterprise order delivery cycles extended to 18 months, which clarifies the industry's outlook [1] - Infrastructure bottlenecks may delay some projects, but this could smooth out the spending cycle in the AI sector rather than being a negative factor [1] Group 2 - RBC Capital Markets has initiated coverage on several semiconductor companies, giving them an "outperform" rating, including Nvidia, Micron Technology, Marvell Technology, Arm, Astera Labs, ASML, Applied Materials, Lam Research, and Lattice Semiconductor [1] - For companies like Broadcom, AMD, Intel, KLA, SanDisk, Qualcomm, Skyworks, and Silicon Labs, RBC has assigned a "market perform" rating [2] Group 3 - High Bandwidth Memory (HBM) demand is expected to be a core growth driver, potentially reducing the cyclical volatility of the memory market [3] - AI workloads are shifting towards reinforcement learning and distributed inference, which require high memory performance [3] - The upcoming HBM4 iteration is anticipated to be beneficial, with average prices expected to increase by 30-50% [3] - The demand for high-capacity server memory (DIMM) and solid-state drives (NAND eSSD) is also driven by the explosion of generative AI [3] - Despite high memory prices potentially impacting demand in the PC and smartphone markets, the memory industry is expected to remain in a supply-demand imbalance until 2027 [3] - Capital expenditures in the wafer fabrication equipment (WFE) sector are projected to maintain strong growth over the next two years [3] - Technological trends such as backside power delivery, advanced packaging, and three-dimensional structures are expected to drive at least high single-digit growth in the wafer fabrication equipment market over the next two years [3]

Summary of Key Points from J.P. Morgan's Semiconductor Industry Conference Call Industry Overview - The semiconductor industry is experiencing a strong demand driven by AI spending and data center build-outs, with companies like NVIDIA and Marvell seeing significant visibility and demand growth [1][5] - Concerns about a potential "AI bubble" are present, but companies report no signs of deceleration in customer activity, with many already planning for deployments in 2027 [1][5] Company-Specific Insights NVIDIA Corporation - NVIDIA is deeply engaged with customers for CY27 deployments, indicating a "tremendous" demand curve ahead [9] - The company has added to its previously announced backlog of over $500 billion, with expectations of significant revenue from data center operations [9] - Supply chain readiness for CY26 is confirmed, with confidence in managing the transition to new systems [9] - NVIDIA is focusing on physical AI opportunities, particularly in automotive and other industry verticals [9] - A 90% attach rate for networking products in data centers indicates strong integration of NVIDIA's offerings [9] Marvell Technology Inc. - Marvell's short-term bookings are described as "on fire," with expectations of 25% growth in the datacenter business for CY26 and 40% for CY27 [12] - AI custom ASIC revenues are projected to double to $3.6 billion in CY27, driven by strong demand from major customers [12] - The company is well-positioned in networking products, with significant growth expected in optical networking and switching [12] Analog Devices (ADI) - ADI is experiencing a cyclical recovery, particularly in industrial and communications segments, with a 50% year-over-year growth in the datacenter segment [15] - The company anticipates a return to normalized consumption levels in 2026, with strong momentum in automotive and consumer electronics [15] Micron Technology (MU) - Micron has a $10 billion design win pipeline expected to unfold over the next 4-5 years, with strong demand for DRAM and NAND [21] - The company expects at least 20% growth in bit shipments for both DRAM and NAND in CY26, despite supply constraints [21][23] - Pricing for DRAM is forecasted to increase by nearly 60% year-over-year in CY26 due to ongoing supply-demand tightness [23] Synaptics Inc. - Synaptics is focusing on context window memory management as a growing demand vector for NAND, driven by AI applications [24] - The company expects physical AI and robotics to become significant demand drivers for memory in the future [24] Silicon Laboratories Inc. (SLAB) - SLAB is seeing strong revenue growth from electronic shelf labels and smart metering, with expectations of continued momentum into 2026 [18] - The continuous glucose monitoring business is also expected to contribute significantly to revenue growth [18] Market Trends - The overall tone in the memory market is bullish, with improving demand for DRAM and NAND as AI applications increase memory requirements [1][5] - Companies are actively working on new product introductions and demos to capture opportunities in physical AI and edge AI applications [1][5] Conclusion - The semiconductor industry is poised for strong growth driven by AI and data center demands, with key players like NVIDIA, Marvell, and Micron leading the charge. The cyclical recovery in end markets and the focus on innovative applications in AI and edge computing are expected to sustain momentum through 2026 and beyond [1][5][12][21]