Texas Instruments, a global semiconductor chipmaker, has agreed to acquire Silicon Labs, a specialist in secure embedded wireless connectivity, for about $7.5 billion in an all-cash deal that the companies say will create a global leader in embedded wireless connectivity solutions.
Under the definitive agreement, Silicon Labs stockholders will receive $231.00 per share in cash at closing. Texas Instruments said it expects to fund the transaction with a combination of cash on hand and debt financing arranged prior to closing, and that the deal is not subject to any financing contingency.
The companies framed the combination as a way to pair Silicon Labs’ embedded wireless connectivity portfolio and mixed-signal expertise with Texas Instruments’ analog and embedded processing offerings, along with its internally owned manufacturing and technology base. Texas Instruments said the transaction adds roughly 1,200 products that support a range of wireless connectivity standards and protocols, and expects the combined company to accelerate growth through broader market reach, direct customer relationships, and cross-selling opportunities.
A central financial element is a synergy target of about $450 million in annual manufacturing and operational benefits within three years after closing. Texas Instruments said it plans to “reshore” Silicon Labs’ manufacturing from external foundries by leveraging its own footprint, including U.S. 300mm wafer fab facilities and internal assembly and test capabilities, and said its defined process technologies, including 28nm, are optimized for Silicon Labs’ wireless connectivity portfolio.
The deal is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions, including approval by Silicon Labs stockholders. Texas Instruments said the deal is expected to be accretive to earnings per share, excluding transaction-related costs, in the first full year after closing, and reiterated its capital return strategy to return 100% of free cash flow to shareholders over time through dividends and share repurchases.
KEY QUOTES
“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 optimized for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide. Together, we can do more. The Texas Instruments and Silicon Labs teams share a high-performing culture focused on excellence, engineering and innovation, and I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments’ shareholders.”
Haviv Ilan, Chairman, President and Chief Executive Officer, Texas Instruments
“Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way. Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices. The opportunity ahead is significant for both Texas Instruments and Silicon Labs. By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation.”
Matt Johnson, President and Chief Executive Officer, Silicon Labs
