Texas Instruments to acquire Silicon Labs for $7.5B
Texas Instruments has signed a definitive agreement to acquire Silicon Labs in an all-cash transaction valuing the wireless connectivity specialist at approximately USD 7.5 billion.
Under the terms of the agreement, Texas Instruments will pay USD 231.00 per share for Silicon Labs. The transaction has been unanimously approved by the boards of directors of both companies.
Texas Instruments said in a press release that the acquisition will create a “global leader in embedded wireless connectivity solutions” by combining Silicon Labs’ mixed-signal and wireless portfolio with TI’s analog and embedded processing capabilities and internally owned manufacturing. The transaction expands TI's portfolio with the addition of approximately 1,200 products that support a variety of wireless connectivity standards and protocols.
A key part of the transaction is the integration of Silicon Labs’ manufacturing into Texas Instruments’ internally owned production infrastructure. Texas Instruments said it intends to shift Silicon Labs’ production away from external foundries and into its own manufacturing footprint, which includes 300mm wafer fabrication facilities in the US as well as internal assembly and test operations.
"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," said Haviv Ilan, chairman, president and CEO of Texas Instruments, in the press release.
Texas Instruments expects the transaction to generate approximately USD 450 million in annual manufacturing and operational synergies within three years of closing.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals, approval by Silicon Labs shareholders and other customary closing conditions.
