New York, Feb 4, 2026, 13:05 ET — Regular session
- Shares of Silicon Labs jumped sharply in U.S. trading following Texas Instruments’ agreement to acquire the company for $231 per share in cash
- The offer reflects about a 69% premium over Silicon Labs’ last “unaffected” closing price, before talks of the deal became public
- Silicon Labs reported quarterly results but announced it will cancel its Feb. 10 earnings call due to the pending acquisition
Shares of Silicon Laboratories Inc surged roughly 48% to $202.46 in Wednesday afternoon trading, following news that Texas Instruments will acquire the wireless chip maker for $7.5 billion.
This matters because the all-cash bid sets a concrete value for Silicon Labs, just as investors have been quick to pull back from smaller-cap semiconductor rallies without a clear catalyst.
Silicon Labs has also shifted its next big checkpoint due to the deal: it canceled the Feb. 10 earnings call and halted forward-looking guidance amid the pending transaction.
Texas Instruments is set to acquire Silicon Labs for $231 per share in cash, marking a roughly 69% premium over Silicon Labs’ last unaffected closing price on Tuesday. The deal is expected to wrap up in the first half of 2027. If Silicon Labs backs out, it faces a $259 million termination fee; Texas Instruments would owe $499 million if it pulls out. Reuters also reported that Stifel analysts believe the merger could create a stronger wireless-and-analog product lineup. (Reuters)
In a joint statement shared by Nasdaq, Texas Instruments CEO Haviv Ilan highlighted that the company’s in-house manufacturing “will provide customers dependable supply worldwide.” Silicon Labs CEO Matt Johnson described the deal as a move to “accelerate innovation.” (Nasdaq)
On Wednesday, Silicon Labs posted fourth-quarter revenue of $208 million and non-GAAP diluted EPS of $0.56. The company said its pending acquisition prompted the cancellation of the Feb. 10 earnings call and a pause in guidance. (PR Newswire)
Talk of a deal surfaced late Tuesday after a source told Reuters that Texas Instruments is deep in talks to acquire Silicon Labs for around $7 billion, following an initial report by the Financial Times. Shares of Silicon Labs jumped sharply in after-hours trading, while Texas Instruments’ stock dipped. (Reuters)
Despite Wednesday’s surge, Silicon Labs remained below the $231 offer price, highlighting a significant gap likely tied to the extended closing timeline and typical uncertainties surrounding approvals and deal completion.
Texas Instruments’ acquisition deepens its reach into connectivity chips for industrial and consumer devices, a segment far removed from the AI processors where Nvidia and AMD lead the pack.
The risk is clear: the deal will take time, still requiring regulatory approval and other conditions. Any misstep could send Silicon Labs shares sliding back to pre-announcement levels.
Investors are now focused on the deal documents and regulatory approvals, along with how management plans to use the Feb. 10 slot originally reserved for the canceled earnings call, as the transaction aims for a first-half 2027 close.
