New York, Feb 6, 2026, 12:51 EST — Regular session
- Texas Instruments shares dipped midway through trading, going against the strong bounce seen in other chip stocks
- This week, the company struck a deal to acquire Silicon Labs at $231 per share, paid entirely in cash
- Investors are sizing up the premium, the financing strategy, and the lengthy timeline before the deal closes
Shares of Texas Instruments Incorporated slipped roughly 0.5% to $222.79 in midday trading Friday, underperforming a wider semiconductor rally. Investors remained focused on the company’s recent actions regarding Silicon Labs.
The deal stands out since Texas Instruments hasn’t relied on major acquisitions for years. This move would push the company beyond its core analog chips into embedded wireless connectivity, a fiercely competitive space. The hefty price tag sparks renewed debate over prioritizing capital returns versus growth through acquisitions.
U.S. stocks rebounded Friday following a tough run for tech, with chipmakers at the forefront of the recovery. The PHLX semiconductor index jumped 4.6%, boosted by strong performances from Broadcom and AMD. 1
Texas Instruments announced on Feb. 4 that it will acquire Silicon Labs for $231 per share in cash, valuing the deal at around $7.5 billion. The company plans to finance the purchase using cash on hand and debt, with no financing contingencies. CEO Haviv Ilan described the move as “a significant milestone.” Silicon Labs CEO Matt Johnson highlighted the companies’ “strong Texas heritage.” 2
The deal values Silicon Labs at roughly a 69% premium over its last unaffected close, according to Reuters. The agreement carries hefty termination fees: $259 million for Silicon Labs and $499 million for Texas Instruments. Analysts at Stifel noted the merger “could create one of the most formidable wireless-analog portfolios in the industry.” 3
Texas Instruments submitted its annual report on Form 10-K last Friday, covering the fiscal year ending Dec. 31, 2025. 4
In a filing dated Feb. 6, the company disclosed that its board has approved bylaw changes introducing a forum selection clause. This clause directs specific corporate and shareholder derivative lawsuits to Delaware courts, while routing Securities Act claims to U.S. federal district courts. 5
Traders are weighing if the stock’s recent slide will persist as investors factor in the funding costs of an all-cash deal and when the expected savings will kick in. Texas Instruments frames the acquisition as a move to accelerate growth in wireless connectivity and better leverage its manufacturing capacity.
The road ahead remains lengthy. The deal requires regulatory approval and the green light from Silicon Labs shareholders. Any hold-up would delay the moment cost savings kick in. On top of that, a tougher slump in industrial demand would weigh heavily, since both firms are counting on that sector to drive growth.
Investors await upcoming merger filings, notably Silicon Labs’ proxy statement ahead of its special stockholder meeting, looking for fresh details on integration plans. On Feb. 4, TI executive Amichai Ron informed employees he’d cover the announcement “in more detail” during a town hall scheduled for Feb. 11. 6
