$7.5B Deal！TI Acquires Silicon Labs

On February 4, Texas Instruments (TI) revealed it will acquire Silicon Labs, a leader in secure wireless technology chips, in an all-cash deal valued at approximately $7.5 billion, or $231 per share. The two companies have signed a definitive agreement.

This acquisition combines Silicon Labs' extensive portfolio and expertise in mixed-signal solutions with TI's industry-leading analog and embedded processing products, along with its in-house technology and manufacturing capabilities. Together, the companies aim to become a global leader in embedded wireless connectivity solutions. The merged company is expected to accelerate growth by enhancing innovation and expanding market reach to serve both existing and new customers more effectively.

TI noted that the acquisition strengthens its global leadership in embedded wireless solutions. By leveraging a broad and deep product lineup, technology expertise, and customer relationships, the combined company will become a top provider in the rapidly expanding embedded wireless market, where more devices are connecting to networks every day. The deal adds around 1,200 products to TI's portfolio, covering multiple wireless standards and protocols.

The transaction also allows for optimized manufacturing capabilities. Silicon Labs' production will shift from external foundries back to the U.S., tapping into TI's industry-leading internal capacity. TI's 300mm wafer fabs and in-house assembly and testing facilities will provide large-scale, cost-effective production for Silicon Labs’ products. Additionally, TI's mature process technologies, including 28nm, have been optimized for wireless connectivity products, enabling more efficient and faster design cycles for future technologies.

By expanding market channels and cross-selling opportunities, the combined company will deepen customer engagement. TI's direct customer relationships, experienced sales team, and strong e-commerce infrastructure will accelerate growth. Since 2014, Silicon Labs has achieved roughly 15% compound annual revenue growth through expanded customer coverage and deeper engagement. The merger will create a stronger product portfolio to better serve the combined customer base.

Significant synergy opportunities are also expected, with approximately $450 million in annual manufacturing and operational efficiencies projected within three years of closing.

Under the board-approved agreement, Silicon Labs shareholders will receive $231 in cash per share at closing. TI plans to fund the deal using a combination of cash on hand and pre-arranged debt financing. The transaction is not subject to any financing conditions.

The deal is expected to close in the first half of 2027, pending regulatory approvals and other customary closing conditions, including Silicon Labs shareholder approval. TI anticipates that the acquisition will be accretive to its earnings per share in the first full year after closing, excluding transaction-related costs. TI will continue its capital return strategy, aiming to return 100% of free cash flow to shareholders through dividends and share repurchases.