onsemi has signed a definitive agreement to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, marking a major strategic move to strengthen its position in the rapidly growing Physical AI market.
The acquisition combines onsemi’s expertise in power and sensing technologies with Synaptics’ Edge AI computing, human-machine interface, and wireless connectivity portfolio to create a broader intelligent systems platform. The companies expect the combined business to address a significantly larger market across automotive, industrial, robotics, AI infrastructure, and intelligent edge applications.
Under the agreement, Synaptics shareholders will receive 1.350 shares of onsemi common stock for each Synaptics share, representing an approximately 19 percent premium based on the companies’ 10-day volume-weighted average closing prices. The transaction is expected to close in mid-2027, subject to shareholder and regulatory approvals.
The acquisition is expected to expand onsemi’s total addressable market by $30 billion, increasing it to $243 billion by 2030. By integrating Synaptics’ Edge AI compute platform, software ecosystem, wireless connectivity, and sensing technologies, onsemi aims to become a leading provider of intelligent systems built around the four pillars of Physical AI: Power, Sense, Connected Compute, and Control. The combined platform will enable machines to sense, decide, act, and adapt in real time across a broad range of edge AI applications.
Financially, onsemi expects the transaction to be accretive to non-GAAP earnings per share within 18 months after closing while generating approximately $200 million in annual cost and revenue synergies. The company also expects the deal to support long-term gross margin expansion and deepen customer engagement through integrated hardware and software solutions.
Following the announcement, onsemi shares declined nearly 10 percent in extended trading, while Synaptics shares gained more than 10 percent, reflecting investor expectations regarding the acquisition.
Before announcing its $7 billion acquisition of Synaptics, onsemi focused on smaller, technology-driven acquisitions that strengthened its leadership in silicon carbide (SiC), intelligent sensing, and edge computing.
SWIR Vision Systems (Completed July 2024)
onsemi acquired SWIR Vision Systems in July 2024 to expand its intelligent sensing portfolio with colloidal quantum-dot (CQD)-based short-wave infrared (SWIR) imaging technology. The acquisition enables onsemi to integrate SWIR capabilities into its CMOS image sensors, allowing cameras to see through dense materials, gases, fabrics, and plastics. The technology targets industrial inspection, machine vision, surveillance, automotive, and autonomous driving applications. The financial terms were not disclosed, and the acquired team joined onsemi’s Intelligent Sensing Group.
GT Advanced Technologies (Completed November 2021)
In November 2021, onsemi completed the acquisition of GT Advanced Technologies (GTAT) for $415 million in cash. The deal significantly strengthened onsemi’s silicon carbide (SiC) supply chain by adding crystal growth and wafer manufacturing capabilities. The acquisition supports growing demand for SiC-based semiconductors used in electric vehicles, EV charging infrastructure, renewable energy, and industrial power systems. It also enabled onsemi to accelerate investments in 150 mm and 200 mm SiC wafer technologies.
The $7 billion deal for acquiring Synaptics reflects onsemi’s strategy to move beyond AI data centers and capitalize on the next wave of AI growth at the intelligent edge, where demand is rising for autonomous vehicles, robotics, industrial automation, smart devices, and other Physical AI applications.
BABURAJAN KIZHAKEDATH