New York, Feb 5, 2026, 19:22 EST — After-hours
Texas Instruments (TXN) shares ticked up 0.5% in after-hours trading Thursday, closing at $223.98, following a regular session finish of $222.82. During the day, the stock fluctuated between $219.10 and $225.80.
The announcement follows a day after the analog chipmaker revealed its largest acquisition in over ten years—a $7.5 billion all-cash deal to acquire Silicon Labs. Traders are crunching the numbers now: the hefty premium, extended closing timeline, and the impact of the financing structure on buybacks and dividends.
Texas Instruments is framing the acquisition as a quicker route into embedded wireless connectivity — the chips enabling devices to communicate in factories, homes, and commercial equipment — all while relying on its own manufacturing facilities instead of external foundries.
Texas Instruments announced a $231-per-share deal to acquire Silicon Labs (SLAB), projecting roughly $450 million in annual manufacturing and operating cost savings within three years after closing. CEO Haviv Ilan described the purchase as “a significant milestone” for TI’s embedded strategy. Silicon Labs CEO Matt Johnson said the combined portfolios and TI’s scale should “serve more customers and accelerate innovation,” according to the companies. (Texas Instruments)
The $231-per-share offer values Silicon Labs at a roughly 69% premium over its last unaffected closing price. If completed, this would mark Texas Instruments’ biggest acquisition since its $6.5 billion National Semiconductor deal back in 2011. Stifel analysts see the merger as a potentially powerful wireless-analog combination. The agreement also features termination fees of $259 million for Silicon Labs and $499 million for Texas Instruments, according to Reuters. (Reuters)
In a Rule 425 filing, an internal TI message shared post-announcement described the deal as a move to “accelerate our progress” in embedded processing. It highlighted Silicon Labs’ lineup of about 1,200 products covering various wireless standards. The message also claimed that wireless connectivity growth is outpacing the wider semiconductor market. (SEC)
For TXN investors, the focus isn’t on product overlap but on speed: how fast TI can shift Silicon Labs’ portfolio to its own fabs, and if the anticipated cost savings arrive on time. The company said it will finance the acquisition with a mix of cash and debt, and the deal carries no financing contingency.
TI’s capital management review is another key item on the near-term agenda, with investors eager for clarity on cash returns, capex plans, and leverage limits. The company announced it will webcast the presentation on Feb. 24 at 10 a.m. Central, featuring Ilan, CFO Rafael Lizardi, and IR head Mike Beckman. (Texas Instruments)
Yet disappointment remains possible. The deal still requires regulatory approvals and a Silicon Labs shareholder vote, which could delay the process. The longer it drags on, the greater the risk that shifts in macro demand or pricing for industrial and consumer electronics will impact it.
As Friday’s session approaches, all eyes are on whether TXN can maintain its recent gains while the market absorbs the premium and funding plan. Investors will also be looking for any new updates on the approval process and integration ahead of the Feb. 24 capital management webcast.
