DALLAS, Feb 4, 2026, 08:59 CST
- Texas Instruments will acquire Silicon Labs for $231 per share in cash, valuing the deal at about $7.5 billion.
- Pending regulatory and shareholder approvals, the companies plan to finalize the deal by mid-2027.
- TI projected about $450 million in yearly manufacturing and operational cost savings within three years after closing.
Texas Instruments revealed Wednesday it will buy Silicon Laboratories in a $7.5 billion all-cash deal. The move stands out for the company, which typically sticks to steady sales of “everyday” chips. https://www.reuters.com/sustainability/sus…
The acquisition expands TI’s reach in embedded wireless connectivity—the chips that let “internet of things” devices talk to each other and networks—adding to its core analog business. Analog chips handle real-world signals like power, sound, and temperature rather than just digital data.
The deal arrives while chipmakers reshape their portfolios, caught between heavy bets on AI infrastructure and a broad spectrum of industrial and consumer gadgets.
Texas Instruments will hand Silicon Labs shareholders $231 per share in cash once the deal closes, targeting the first half of 2027. That timeline depends on regulatory green lights and a shareholder vote at Silicon Labs. TI says it will fund the acquisition with cash on hand plus debt, without any financing condition.
The company anticipates hitting roughly $450 million in yearly manufacturing and operational synergies within three years after closing. It also forecasts a boost in earnings per share in the first full year after the deal closes, excluding transaction costs. Goldman Sachs is advising TI, while Qatalyst Partners represents Silicon Labs.
Silicon Labs is a “fabless” outfit, handling chip design but leaving production to outside foundries. TI, on the other hand, owns and operates its own factories. TI has framed the deal as a way to shift more of Silicon Labs’ chip output into its own manufacturing system, highlighting both supply reliability and cost cuts.
Silicon Labs shares surged in premarket trading after the announcement, while Texas Instruments’ stock declined. The previous day, news that TI was in advanced talks to buy Silicon Labs had already lifted Silicon Labs in after-hours trading.
“Acquiring Silicon Labs is a crucial move to bolster our long-term embedded processing strategy,” TI CEO Haviv Ilan said in a statement. Silicon Labs CEO Matt Johnson pointed to their shared Texas heritage and rising demand for connected devices. https://www.prnewswire.com/news-releases/t…
Silicon Labs reported $785 million in revenue for 2025, the Dallas Morning News says, while Texas Instruments pulled in $15.6 billion for 2024. On an investor call, Johnson noted the company has “built a loyal customer base, especially across industrial applications.” https://www.dallasnews.com/business/local-…
Silicon Labs has been shifting its business strategy for quite some time. In 2021, it sold off automotive chip assets and other divisions to Skyworks Solutions for $2.75 billion, according to Reuters. This was part of the company’s effort to concentrate on connected devices such as smart-home products and industrial equipment.
Time and execution remain the biggest hurdles. The companies target a close by mid-2027, but regulators might stall the process. On top of that, anticipated cost savings could miss their mark once engineering teams and product roadmaps merge. A filing shows Silicon Labs faces a $259 million termination fee under specific scenarios, while TI would owe $499 million if it pulls out.
Related articles: NASDAQ:TXN
