Texas Instruments to Buy Silicon Labs in $7.5B Deal

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Texas Instruments announced that it will buy Silicon Labs for approximately $7.5 billion.

TI said the acquisition positions it to be a leading provider of embedded wireless connectivity solutions, combining Austin, Texas-based Silicon Labs' wireless IoT system-on-chips (SoCs) and mixed-signal expertise with Dallas, Texas-based TI's analog and embedded processing portifolio. The deal will add approximately 1,200 products that support a variety of wireless connectivity standards and protocols to TI's product lineup.

The two companies explained that they will be able to grow faster together than apart by better serving existing and new customers through enhanced innovation and market access.

"The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy," said Haviv Ilan, CEO of TI, in a statement. "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."

According to TI, it can also bring its fully integrated process, design, and manufacturing capabilities to the table, reshoring Silicon Labs' manufacturing from external foundries by leveraging TI's internal capacity. TI's manufacturing footprint includes 300-mm fabs in the U.S., as well as internal assembly and test capabilities that can all be applied at scale to Silicon Labs' products.

TI said its process technologies, including 28 nm, are optimized for Silicon Labs' wireless connectivity portfolio, enabling more efficient and faster future process technology design cycles.

Silicon Labs has emerged as one of the leading players in wireless SoCs for the Internet of Things (IoT) market, with a record of delivering an average of approximately 15% revenue growth per year since 2014. TI said its progress will be supported by increasing customer access, cross-sell opportunities, and deepening engagement with existing customers. "Together, we can do more," stated Ilan.

TI also noted that the combined company is expected to generate $450 million in annual manufacturing and operational "synergies" within three years after the deal closes.

The deal is expected to close in the first half of 2027, subject to regulatory approvals and all other customary closing conditions.