Microchip Technology has signed a definitive agreement to acquire Hailo, a developer of edge AI processors, vision processing systems and AI software. Financial terms were not disclosed.
Microchip said the transaction is not expected to have a material effect on its financial results.
The acquisition is expected to close near the end of the quarter ending September 30, 2026, subject to regulatory approvals and other customary conditions.
Hailo develops processors that enable AI models to operate directly on devices rather than depending entirely on remote cloud infrastructure.
Its products are used for computer vision, generative AI and multimodal workloads across edge servers, cameras, robotics platforms and other embedded systems.
The acquisition will add the Hailo-8, Hailo-10 and Hailo-15 product families to Microchip’s portfolio.
These products support convolutional neural networks, transformers, large language models, vision-language models, image signal processing, digital signal processing, video encoding and AI analysis of video streams.
Hailo also brings more than 100 current customers and a developer community exceeding 10,000 users.
Microchip plans to combine Hailo’s AI acceleration and vision technology with its existing embedded processors, field-programmable gate arrays, connectivity products, security systems, power management and analog components.
The combined portfolio is expected to support intelligent edge applications including drones, robots, industrial automation systems, smart cameras and embedded AI devices.
Microchip also expects to benefit from Hailo’s developer ecosystem, including its Raspberry Pi presence, online developer resources, software repositories and community forum.
The proposed deal follows Microchip’s acquisition of Neuronix AI Labs, which added technology for optimizing neural networks on programmable chips and systems-on-chip.
KEY QUOTES:
“The acquisition of Hailo accelerates Microchip’s expansion into high-performance edge AI processing.”
“Together, we can help customers build more capable intelligent edge systems with the right balance of performance, power efficiency, reliability and system cost.”
Mark Reiten, Senior Corporate Vice President at Microchip Technology
“Joining Microchip would give Hailo the opportunity to scale our accelerated edge AI technology through a global embedded systems leader.”
Orr Danon, CEO of Hailo
