Texas Instruments has announced a definitive agreement to acquire Silicon Laboratories for approximately $7.5 billion in an all-cash transaction, marking the Dallas-based chip giant's largest acquisition in over a decade. Under the terms of the deal, Texas Instruments will pay $231 per share for Silicon Labs, representing a premium of approximately 69 percent over the company's last unaffected closing price and sending shares surging more than 50 percent following the announcement.
The acquisition will create a global leader in embedded wireless connectivity solutions by combining Silicon Labs' strong portfolio of mixed-signal products with Texas Instruments' industry-leading analog and embedded processing capabilities. Silicon Labs, headquartered in Austin, offers approximately 1,200 products supporting various wireless connectivity standards and protocols used in smart home devices, industrial automation, battery energy storage systems, and commercial lighting applications.
Texas Instruments CEO Haviv Ilan stated that Silicon Labs' leading embedded wireless connectivity portfolio enhances the company's technology and intellectual property, enabling greater scale to better serve customers worldwide. Silicon Labs CEO Matt Johnson noted that by combining their embedded wireless connectivity portfolio with Texas Instruments' scale, technology, and manufacturing capabilities, the combined company will be positioned to serve more customers across rapidly growing markets.
The strategic rationale behind the acquisition includes Texas Instruments' plan to reshore Silicon Labs' manufacturing to its own internal foundries rather than relying on external suppliers, a move that aligns with broader industry trends toward supply chain security. The deal is expected to generate approximately $450 million in annual manufacturing and operational synergies within three years of closing, with the transaction anticipated to be accretive to earnings per share in the first full year following completion.
Texas Instruments will fund the acquisition with cash and approximately $7 billion of incremental debt. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and a Silicon Labs stockholder vote. Under the agreement, Silicon Labs would pay a $259 million termination fee if it walks away from the deal, while Texas Instruments would pay $499 million if it abandons the transaction. This marks Texas Instruments' biggest acquisition since its $6.5 billion purchase of National Semiconductor in 2011.
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