Last Thursday, Skyworks Solutions (Nasdaq: SWKS) announced a huge share repurchase program, which is usually a good sign for investors. After all, when a company is willing to invest in itself through share purchases, why shouldn't you be? However, sometimes there is more than meets the eye.

There has been much debate about corporate balance sheets as we have moved out of the recession. Many will have you believe that those balance sheets are much stronger than they've been in years past, buoyed by large amounts of cash, as spending and investing was put on hold for much of 2008 into 2009. On the other hand, companies sitting on so much cash means they don't believe there are great opportunities for growth or investment to deploy this capital. This cash is essentially earning no return as it just sits on the balance sheet. Some would argue that deploying this capital into a share repurchase program only furthers this point.

Skyworks is a pretty hot stock right now; in fact, it is a momentum stock in favor with many of the large institutional investors. With stock market participants looking for ways to gain more and more exposure to Apple (Nasdaq: AAPL) iPhone mania, Skyworks has become a good play.

Skyworks is a growing semiconductor company that is best known for the high-quality chips it provides for numerous smartphone makers. Analysts estimate that the company has $4 worth of parts inside the new iPhone 4, which is a 100% increase from the $2 in previous iPhone versions.

While Apple is an important customer, Skyworks generates the majority of its revenue from Samsung, Sony Ericsson, and HTC. This also gives it exposure to Google's (Nasdaq: GOOG) Android-based smartphones, so it has a wealth of diversity among revenue streams in a segment that is expected to grow more than 42% in the next two years.

The explosive growth in this industry is the reason one should question the share buyback of up to $200 million. In a highly competitive environment, in which technological innovation and advancement lead to revenue growth, it seems like this money could be put to better use in research and development. Investors who price this stock as a growth stock with a high multiple will probably agree, which should add some pressure to the share price in the short run. Skyworks is a well-run company with a great balance sheet, but investors should be wary of growth companies using their cash to buy shares instead of develop technology.

Do you think Skyworks should be using its cash to buy back shares? Let us know what you think in the comments box below.

Andrew Bond doesn't own shares in the companies listed here. Try any of our Foolish newsletters today, free for 30 days. Apple is a Stock Advisor recommendation. Google is a selection of Rule Breakers and Inside Value. The Fool has a disclosure policy.