Activist Investor Strikes: Starboard Targets Qorvo as onsemi Snaps Up Its SiC Business

In a significant development in the semiconductor industry, activist investor Starboard Value has taken a 7.7% stake in Qorvo Inc. (QRVO), while onsemi (ON) has acquired Qorvo's Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business for $115 million in cash. These moves signal a potential shake-up in the industry and present opportunities for investors to capitalize on the strategic shifts.

Starboard Value's involvement in Qorvo is likely to drive significant changes in the company's strategic direction and financial performance. As an activist investor, Starboard is known for pushing for operational changes and strategic shifts to enhance shareholder value. Some potential operational changes or acquisitions that Starboard might push for at Qorvo include:

1. Cost-cutting measures and operational efficiency: Starboard has a track record of pushing companies to improve operational efficiency and reduce costs. They might advocate for Qorvo to consolidate factories, reduce operating expenses, and streamline the organization to reduce overhead costs.
2. Asset divestitures: Starboard might suggest divesting underperforming or non-core assets to focus resources on more profitable segments. This could include selling or spinning off the Connectivity and Sensors Group (CSG) segment or exploring strategic alternatives for the High Performance Analog (HPA) segment.
3. Mergers and acquisitions (M&A): Starboard might encourage Qorvo to explore strategic M&A opportunities to strengthen its market position or enter new growth markets. This could include acquiring smaller, innovative companies in the radio frequency and power semiconductor space or exploring a merger with a complementary company to create synergies and improve market competitiveness.
4. Board composition and management changes: Starboard might push for changes in Qorvo's board composition or management team to drive strategic changes and improve performance. This could involve replacing underperforming board members or executives with individuals who have a proven track record in the semiconductor industry or installing a new CEO to drive a turnaround at Qorvo.

Onsemi's acquisition of Qorvo's SiC business is a strategic move that aligns with the company's broader growth strategy in several ways. By acquiring the SiC JFET technology business, onsemi expands its power semiconductor portfolio, enabling it to address a broader range of customer needs and market segments. This acquisition also allows onsemi to tap into high-growth markets such as AI data centers, electric vehicles, and industrial applications, increasing its market opportunity by $1.3 billion by 2030. Additionally, the acquisition further strengthens onsemi's leadership in high and mid-voltage power semiconductors and demonstrates the company's commitment to innovation and investment in its technology leadership.



Investors should closely monitor the developments at Qorvo and onsemi, as the strategic shifts driven by Starboard's involvement and onsemi's acquisition of Qorvo's SiC business present opportunities for significant value creation. As these companies navigate the rapidly evolving power electronics market, their strategic moves could drive improved financial performance and enhance shareholder value. By staying informed and capitalizing on these opportunities, investors can position themselves to benefit from the growth and innovation in the semiconductor industry.