onsemi has agreed to acquire Synaptics in a roughly $7 billion all-stock deal, broadening its portfolio beyond power and sensing chips as it pushes to become a larger supplier for the intelligent edge.

The deal will add edge AI processors, wireless connectivity, and human-machine interface (HMI) solutions to onsemi's portfolio, building on its existing strengths in power, control, and sensing.

onsemi said it's already well-positioned across AI infrastructure, supplying power electronics and other chips for the energy grid to the data center core, as well as in end markets like electric vehicles. But executives said the Synaptics deal extends that reach into the realm of "physical AI" by giving it more of the building blocks to sense, process, connect, and respond in real-time systems such as robotics and augmented-reality (AR) devices.

According to onsemi CEO Hassane El-Khoury, the deal would turn it into more of a provider of integrated, system-level solutions. "This shift towards physical Al will require power, sense, connected compute and control to work together seamlessly. The addition of Synaptics helps position onsemi at the intersection of these four pillars, enabling us to capture a significantly larger Al opportunity that extends beyond Al data center and into edge applications."

He said that the deal will immediately fill a key gap in onsemi's portfolio by adding connected compute capabilities, bringing it closer in line with larger rivals including Analog Devices, Texas Instruments, and Infineon. Synaptics’ Astra platform combines purpose-built AI processors and NPUs with a wireless connectivity portfolio spanning Wi-Fi, Bluetooth, and GPS.

On top of that, the deal will also help expand the company’s software reach with Synaptics' full open-source software stack, which is designed to speed deployment of power-efficient AI models at the edge.

Synaptics CEO Rahul Patel echoed the same points in his statement: “Together with onsemi, we will combine Synaptics’ strengths in AI-native compute, connectivity, and human-machine interface with onsemi’s leadership in intelligent power and sensing to offer customers integrated solutions and development platforms across every layer of the edge AI stack, deepening customer engagement and expanding across a greater total addressable market.”

The companies said the tie-up would give them the scale to "accelerate their innovation and product roadmap." Merging will allow them to capture more chip content per system while fostering deeper customer engagements, said onsemi. The acquisition is expected to increase onsemi’s exposure to higher-value, differentiated system solutions with embedded IP and software, diversifying its business.

The deal, which has been approved by the boards of both companies, is expected to close in mid-2027, subject to shareholder and regulatory approvals along with other customary closing conditions.