DALLAS, Feb 4, 2026, 07:37 CST
- Texas Instruments is set to acquire Silicon Laboratories for $231 per share in cash, putting the total value of the deal at roughly $7.5 billion
- The companies aim to complete the transaction by the first half of 2027, pending approval from shareholders and regulators
- TI aims to cut manufacturing and operating costs by roughly $450 million annually within three years after closing
Texas Instruments on Wednesday struck a deal to buy Silicon Laboratories for roughly $7.5 billion in cash, aiming to strengthen its foothold in connectivity chips for industrial and consumer devices. The offer of $231 per share represents a roughly 69% premium over Silicon Labs’ last unaffected closing price on Tuesday. Shares of Silicon Labs surged in premarket trading, while TI’s stock dipped. (Reuters)
This deal marks TI’s largest since its $6.5 billion acquisition of National Semiconductor back in 2011. It comes as chipmakers look to expand beyond the red-hot AI sector. By snapping up Silicon Labs, TI boosts its standing in the Internet-of-things space—covering everything from smart home gadgets to factory sensors—where demand tends to be steadier than the typical tech industry’s boom-and-bust cycles. (Financial Times)
TI will shift Silicon Labs’ chip production from outside foundries to its own manufacturing facilities, according to the companies. They project roughly $450 million in yearly manufacturing and operational “synergies”—a term for cost savings from merging operations—within three years after the deal closes. (SEC)
TI expects the deal to boost earnings per share in its first full year post-closing, after accounting for one-time expenses. The acquisition will be financed through a combination of cash and debt, with closure anticipated in the first half of 2027. (MarketScreener)
A regulatory filing revealed the companies have finalized a merger agreement, subject to typical conditions like approval from Silicon Labs shareholders. Texas Instruments submitted the deal paperwork to the U.S. Securities and Exchange Commission early Wednesday. (SEC)
TI CEO Haviv Ilan described the acquisition as a move to boost connectivity at scale: “Silicon Labs’ top embedded wireless connectivity lineup strengthens our tech and IP, allowing us to scale further,” he said. Embedded wireless connectivity means chips that enable devices to connect to networks directly, without needing bulky extras. (Barron’s)
Silicon Labs CEO Matt Johnson described the move as expanding their growth platform. “By merging our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we’ll be able to reach more customers,” he said. Goldman Sachs is advising TI, while Qatalyst Partners is representing Silicon Labs, the companies confirmed. (PR Newswire)
During a presentation to investors, TI highlighted that Silicon Labs focuses mainly on industrial end markets and serves a wide array of customers, with its top client making up under 5% of total revenue. The slides projected Silicon Labs’ 2025 revenue around $785 million and noted a patent portfolio exceeding 1,500 patents. (SEC)
Reuters reported Tuesday that Texas Instruments is in advanced talks to acquire Silicon Labs, a deal initially reported by the Financial Times, though the discussions could still collapse. The report highlights a surge in chip demand as tech companies boost compute spending driven by AI goals. (Reuters)
The deal faces a lengthy road ahead with several obstacles. It requires approval from shareholders and regulators, and TI must manage a manufacturing transition that could interrupt supply if mishandled. Plus, the anticipated cost savings remain uncertain until the operations and teams are fully integrated. (Stocktitan)
