Texas Instruments to Acquire Silicon Labs for $7.5 Billion in All-Cash Deal

Texas Instruments has agreed to acquire Silicon Labs in an all-cash transaction valued at about $7.5 billion, a move aimed at strengthening its position in embedded wireless connectivity and accelerating long-term growth.

Under the terms of the definitive agreement, Silicon Labs shareholders will receive $231 per share in cash. The transaction, which has been unanimously approved by the boards of both companies, is expected to close in the first half of 2027, subject to regulatory approvals and shareholder consent.

The acquisition brings together Silicon Labs’ portfolio of embedded wireless connectivity and mixed-signal solutions with Texas Instruments’ analog and embedded processing capabilities, as well as its internally owned manufacturing footprint. The combined company is expected to emerge as a major global provider of embedded wireless connectivity solutions, a segment seeing rapid growth as more devices become connected.

“This acquisition strengthens our long-term embedded processing strategy,” said Haviv Ilan, Chairman, President and Chief Executive Officer of Texas Instruments. He said Silicon Labs’ wireless connectivity portfolio would enhance Texas Instruments’ technology and intellectual property, while TI’s manufacturing scale would provide customers with dependable global supply.

Silicon Labs President and Chief Executive Officer Matt Johnson said the combination builds on shared engineering cultures and long-term growth strategies. “By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be well positioned to serve more customers and accelerate innovation,” he said.

Texas Instruments said the deal will expand its product portfolio by roughly 1,200 wireless connectivity products supporting a wide range of standards and protocols. A key element of the strategy is the integration of Silicon Labs’ production into Texas Instruments’ internally owned manufacturing network, including 300mm wafer fabrication facilities in the US and in-house assembly and testing operations. The move is expected to reduce reliance on external foundries and improve cost efficiency and supply resilience.

The company expects the transaction to deliver about $450 million in annual manufacturing and operational synergies within three years of closing. Additional benefits are expected from cross-selling opportunities, deeper customer engagement and expanded market access through Texas Instruments’ global sales and distribution channels.

Texas Instruments plans to fund the acquisition through a combination of cash on hand and debt financing, with no financing contingency attached to the deal. The company said the transaction is expected to be accretive to earnings per share in the first full year after closing, excluding transaction-related costs.

Following the acquisition, Texas Instruments said it remains committed to its long-standing capital allocation strategy of returning 100% of free cash flow to shareholders over time through dividends and share buybacks.

The deal underscores ongoing consolidation in the semiconductor sector, as chipmakers look to expand portfolios, secure manufacturing capacity and position themselves for growth driven by connected devices, industrial automation and the Internet of Things.