DALLAS, Feb 4, 2026, 07:37 CST
- Texas Instruments to buy Silicon Laboratories for $231 per share in cash, valuing the deal at about $7.5 billion
- Companies expect the transaction to close in the first half of 2027, subject to shareholder and regulatory approvals
- TI targets about $450 million a year in manufacturing and operating cost savings within three years of closing
Texas Instruments agreed on Wednesday to acquire Silicon Laboratories in an all-cash deal valuing the wireless chip designer at about $7.5 billion, as the analog-chip heavyweight pushes deeper into connectivity chips used in industrial and consumer gear. The $231-per-share offer implies a premium of about 69% to Silicon Labs’ last unaffected close on Tuesday, and Silicon Labs shares jumped in premarket trading while TI slid. (Reuters)
The transaction is TI’s biggest since its $6.5 billion purchase of National Semiconductor in 2011, and it lands as chipmakers hunt for growth beyond the hottest AI segments. Silicon Labs gives TI a larger position in Internet-of-things markets — connected devices from smart homes to factory sensors — where volumes can be steadier than the boom-and-bust cycles that rattle other parts of tech. (Financial Times)
TI plans to move Silicon Labs’ production away from external foundries — contract chip manufacturers — and into its own plants, the companies said. TI expects about $450 million in annual manufacturing and operational “synergies,” a deal term for cost savings from combining operations, within three years of closing. (SEC)
TI said the deal should be accretive in the first full year after it closes, meaning it should add to earnings per share once one-off costs are stripped out. The company plans to fund it with a mix of cash and debt and expects to close in the first half of 2027. (MarketScreener)
A regulatory filing showed the companies have signed a definitive merger agreement and laid out the standard conditions, including the need for Silicon Labs shareholder approval. Texas Instruments filed the deal documents with the U.S. Securities and Exchange Commission early Wednesday. (SEC)
TI Chief Executive Haviv Ilan called the deal a way to scale up in connectivity: “Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale,” he said. Embedded wireless connectivity refers to chips that let devices link to networks without bulky add-ons. (Barron’s)
Silicon Labs CEO Matt Johnson framed it as a bigger platform for growth: “By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers,” he said. Goldman Sachs is advising TI and Qatalyst Partners is advising Silicon Labs, the companies said. (PR Newswire)
In a presentation to investors, TI said Silicon Labs’ business skews heavily to industrial end markets and has a broad customer base, with its largest customer accounting for less than 5% of revenue. The deck also pegged Silicon Labs’ 2025 revenue at about $785 million and cited a portfolio of more than 1,500 patents. (SEC)
Reuters reported on Tuesday that TI was in advanced talks to buy Silicon Labs, in a deal first flagged by the Financial Times, and cautioned the talks could still fall apart. The report noted that the backdrop includes a surge in chip demand as tech firms ramp up compute spending tied to AI ambitions. (Reuters)
But the deal comes with a long runway and a list of hurdles. It needs shareholder and regulatory sign-offs, and TI has to execute a manufacturing shift that can disrupt supply if it goes wrong; the projected cost savings are also just that — projections — until the plants and teams are stitched together. (Stocktitan)
