4127--12/13/2006--SKYWORKS_SOLUTIONS

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The wireless semiconductor markets are characterized by intense competition. Our manufacturing processes are extremely complex and specialized. We may not be able to maintain and improve manufacturing yields that contribute positively to our gross margin and profitability. We are dependent upon third parties for the manufacture, assembly and test of our products. We are dependent upon third parties for the supply of raw materials and components. Changes in the accounting treatment of share-based compensation have adversely affected our results of operations. Our success depends upon our ability to develop new products and reduce costs in a timely manner. The markets into which we sell our products are characterized by rapid technological change. The ability to attract and retain qualified personnel to contribute to the design, development, manufacture and sale of our products is critical to our success. If OEMs and Original Design Manufacturers ( ODMs ) of communications electronics products do not design our products into their equipment, we will have difficulty selling those products. Moreover, a design win from a customer does not guarantee future sales to that customer. Lengthy product development and sales cycles associated with many of our products may result in significant expenditures before generating any revenues related to those products. Uncertainties involving the ordering and shipment of, and payment for, our products could adversely affect our business. Our leverage and our debt service obligations may adversely affect our cash flow. Our reliance on a small number of customers for a large portion of our sales could have a material adverse effect on the results of our operations. Average product life cycles in the semiconductor industry tend to be very short We face a risk that capital needed for our business will not be available when we need it. Remaining competitive in the semiconductor industry requires transitioning to smaller geometry process technologies and achieving higher levels of design integration. We are subject to the risks of doing business internationally. Our operating results may be adversely affected by substantial quarterly and annual fluctuations and market downturns. Global economic conditions that impact the wireless communications industry could negatively affect our revenues and operating results. Our gallium arsenide semiconductors may cease to be competitive with silicon alternatives. We may be subject to claims of infringement of third-party intellectual property rights, or demands that we license third-party technology, which could result in significant expense and prevent us from using our technology. Many of our products incorporate technology licensed or acquired from third parties. If we are not successful in protecting our intellectual property rights, it may harm our ability to compete. Our success depends, in part, on our ability to effect suitable investments, alliances and acquisitions, and to integrate companies we acquire. Certain provisions in our organizational documents and Delaware law may make it difficult for someone to acquire control of us. Increasingly stringent environmental laws, rules and regulations may require us to redesign our existing products and processes, and could adversely affect our ability to cost-effectively produce our products. We may be liable for penalties under environmental laws, rules and regulations, which could adversely impact our business. Our stock price has been volatile and may fluctuate in the future. Accordingly, you might not be able to sell your shares of common stock at or above the price you paid for them.

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4127--12/13/2006--SKYWORKS_SOLUTIONS_INC