The CEO of California-based Skyworks Solutions, Liam Griffin, has in an interview with CNBC forecast an increase in demand for 5G technologies in the near future, stressing that the demand for the new generation network remains. He added that even the pandemic hasn't thwarted this demand completely, but rather facilitated it.
"These [2016 talk of 'traffic jams'] themes are playing out. One of the amazing things here is, despite you know the horrific effects of the pandemic, we’re seeing a usage case change for connectivity. Seamless, safe wireless connectivity is really, really critical today for everyone as we work, as we play, as we educate. We are just all part of that ecosystem", Griffin said.
The Skyworks CEO went on to elaborate on the change in the demand of Internet users that took place over the first half 2020, revealing that some 84,000 online videos were being watched and five million Skype calls were being made every second around the world. He went on to note that telemedicine is also among the potential demands, but admitted that this is currently hard to measure accurately.
All this means that there is an "incredible opportunity" for Skyworks, which is working on 5G products for telecommunication systems, in the future, Griffin admitted. The company added $1.25 to its share value on 24 July after reporting revenue of $737 million, significantly exceeding the expected $687 million. The market growth continued for the company on 27 July, as it gained around 4% in value in a single day.
The rally of the American telecommunication technology company comes over a year after the US government banned one of the biggest competitors in the field of 5G networks, China's Huawei, from its soil. Based on the pretext of alleged backdoors being installed in its tech to enable Beijing to spy, Washington is not only planning to remove all Huawei equipment from US ISPs, but has also banned the sale of American technologies to the Chinese giant, which used to make its 5G mast equipment using American chips.
Both Beijing and Huawei deny Washington's allegations and have threatened the US government with a suit to counter its crackdown campaign. The Chinese company insists that it has no agreement with its country's government to help it spy on their customers around the world.