Texas Instruments (TI) has agreed to acquire Silicon Labs in a move to expand its presence in embedded wireless connectivity.
The $7.5 billion all-cash transaction has been approved by the boards of both companies. The acquisition will combine Silicon Labs’ portfolio of approximately 1,200 products, alongside its expertise in mixed-signal and embedded wireless technologies, with TI’s embedded processing portfolio and internally owned manufacturing capabilities.
What the acquisition brings to the table
Texas Instruments’ core business is in analog and embedded processing semiconductors, which are widely used in industrial, automotive, and consumer electronic systems. The company has comparatively fewer offerings in wireless connectivity, especially in the Internet of Things (IoT) space.
Silicon Labs has established itself in embedded wireless connectivity technology, including chips for smart homes, industrial automation, and other connected devices. Combining Silicon Labs’ portfolio with TI’s existing product base is intended to broaden TI’s technology stack and accelerate its position in connected device markets.
The transaction is expected to extend the reach of embedded wireless connectivity solutions, a segment seeing increasing adoption as more devices are connected across industrial, automotive, and consumer applications. A key element of the strategy is the planned transition of Silicon Labs’ manufacturing from external foundries into TI’s internally owned capacity. TI operates 300mm wafer fabrication facilities in the US, supported by internal assembly and test operations, providing manufacturing scale for Silicon Labs’ products.
Commenting on the acquisition, Haviv Ilan, Chairman, President, and Chief Executive Officer of Texas Instruments, said: “The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy. Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers. Texas Instruments’ industry-leading and internally owned technology and manufacturing is optimised for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide. Together, we can do more. The Texas Instruments and Silicon Labs teams share a high-performing culture focused on excellence, engineering and innovation, and I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments’ shareholders.”
Matt Johnson, President and CEO of Silicon Labs, added:” Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way. “Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices. The opportunity ahead is significant for both Texas Instruments and Silicon Labs. By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation.”
Completion timeframe
Completion is expected in the first half of 2027, but the deal remains subject to regulatory approvals and Silicon Labs stockholder approval.
The companies project approximately $450 million of annual manufacturing and operational synergies within three years of completion, partly through moving more of Silicon Labs’ production into TI’s own fabrication capacity.
The acquisition is expected to deepen customer engagement through expanded market reach and cross-selling opportunities.
