Texas Instruments has signed an agreement to acquire Silicon Labs in an all-cash transaction valued at approximately $7.5 billion, marking a major consolidation move in the global semiconductor industry.
Under the agreement, Texas Instruments will pay $231.00 per share for Silicon Labs, expanding its reach in embedded wireless connectivity solutions.
The acquisition brings together Silicon Labs’ portfolio in mixed signal and embedded wireless connectivity with Texas Instruments’ leadership in analog and embedded processing, as well as its internally owned manufacturing and technology capabilities.
The combined company aims to accelerate innovation, expand market access, and better serve customers across a broad range of connected device applications.
Earlier, Texas Instruments reported fourth-quarter revenue of $4.42 billion, and net income of $1.16 billion. Revenue declined 7 percent sequentially but rose 10 percent year on year. In 2025, Texas Instruments reported revenue of $17.682 billion and net income of $5 billion. Over the past year, TI invested heavily in R&D and capital expenditures. Texas Instruments expects first quarter revenue of $4.32 billion to $4.68 billion.
Deal details
Texas Instruments chairman, president, and CEO Haviv Ilan said the deal is a key step in strengthening the company’s embedded processing strategy. Silicon Labs’ wireless connectivity portfolio enhances Texas Instruments’ technology and intellectual property, while Texas Instruments’ manufacturing scale and supply chain will benefit customers.
Silicon Labs president and CEO Matt Johnson said the combination positions both companies to capitalize on accelerating demand for connected devices by leveraging Texas Instruments’ scale, technology, and manufacturing strength to serve more customers and speed up innovation.
Strategic and Financial Benefits
The acquisition enhances Texas Instruments’ position in embedded wireless connectivity, a fast-growing market driven by the rapid expansion of connected devices. The deal adds 1,200 Silicon Labs products supporting multiple wireless standards and protocols to Texas Instruments’ portfolio.
A key benefit is the ability to leverage Texas Instruments’ low-cost manufacturing capacity. By reshoring Silicon Labs’ production from external foundries to Texas Instruments’ internally owned facilities, the combined company expects improved supply reliability and cost efficiency. Texas Instruments’ manufacturing footprint includes 300mm wafer fabs in the United States, along with internal assembly and test operations. Its defined process technologies, including 28nm, are well suited to Silicon Labs’ wireless connectivity products, enabling faster and more efficient future design cycles.
The transaction deepens customer engagement through Texas Instruments’ direct sales relationships, market channels, and e-commerce capabilities. Silicon Labs has delivered approximately 15 percent compound annual revenue growth since 2014, driven by expanding customer access and deeper engagement. The combined portfolio is expected to unlock cross-sell opportunities and support further growth.
Texas Instruments expects substantial synergies from the deal, with an estimated $450 million in annual manufacturing and operational synergies within three years after closing.
Texas Instruments plans to fund the acquisition using a combination of cash on hand and debt financing, with no financing contingency. The transaction is expected to close in the first half of 2027, subject to regulatory approvals.
Texas Instruments expects the acquisition to be accretive to earnings per share, excluding transaction-related costs, in the first full year following completion, reinforcing the strategic and financial rationale behind the deal.
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