Cirrus Logic Sees Mixed-Signal Growth Pipeline Despite PC and Supply Chain Headwinds

Cirrus Logic sees growth beyond audio through high-performance mixed-signal products, including additional smartphone content, a 3D-sensing power IC and a fourth-generation camera controller.

Supply-chain pressures, OSAT capacity constraints and delayed PC platform ramps are weighing on parts of the business, though management expects modest near-term gross-margin improvement and remains confident in its long-term outlook.

The company is pursuing newer markets such as AI-enabled voice interfaces, robotics, industrial automation, smart meters and other physical-AI applications, while keeping acquisitions as a secondary capital-allocation priority.

Cirrus Logic executives said the company sees a strong pipeline of opportunities across high-performance mixed-signal products, while continuing to manage supply-chain constraints and delayed platform ramps affecting portions of its smartphone and PC businesses.

Speaking at a KeyBanc Capital Markets event, Carl Alberty, Cirrus Logic’s executive vice president of mixed-signal products, said the company’s opportunity pipeline reflects execution on its longstanding strategy to expand beyond audio products. Rather than simply presenting prospective capabilities to customers, the company has focused on demonstrating intellectual property through working silicon, he said.

“That effort to prove out that IP in silicon is starting to become real,” Alberty said, describing opportunities for both incremental growth and next-generation content expansion.

Alberty said Cirrus Logic does not expect to ramp brand-new custom silicon products during the current year. However, he said the company sees potential for incremental content gains through attachment rates and configurations of its existing audio and high-performance mixed-signal portfolio.

On a power integrated circuit being developed for 3D sensing, Alberty said it is reasonable to view the potential content value as roughly comparable to the power-conversion IC Cirrus Logic currently ships. The new product remains on track, he said, though the company must continue executing and supporting its customer. He characterized the 3D-sensing IC as an enhancement within an existing subsystem, in contrast with the company’s power conversion and control IC, which represented a new function and the first chip of its kind for that application.

Cirrus Logic also expects further runway for its camera-controller products. Alberty said the company has deployed three generations of the products over the past five to six years, with each generation providing greater performance capabilities and value. A fourth generation is under development, he said. The company has seen adoption of multiple camera-controller generations within the same product as new versions are introduced, as well as differing attachment rates across product portfolios, according to Alberty.

Chief Financial Officer Jeff Woolard said supply-chain cost increases and capacity constraints extend beyond memory and include system-on-chip supply and back-end manufacturing. For Cirrus Logic, however, previously negotiated input-cost agreements had limited the immediate effect of higher costs. Woolard said the company was nearing the end of an agreement with one foundry and preparing to enter another arrangement intended to provide capacity and pricing certainty. He said Cirrus Logic continues to work aggres...