New York, Feb 4, 2026, 11:37 EST — Regular session
- Shares of Texas Instruments dipped late this morning following its $7.5 billion deal to acquire Silicon Labs.
- Investors are balancing the hefty price and extra debt with the potential cost savings and the company’s expanded focus on wireless chips.
- The deal won’t close until 2027, with a lengthy stretch of approvals and execution risk still ahead.
Shares of Texas Instruments slipped 0.9% to $223.18 late morning in New York, following the announcement of a $7.5 billion deal to acquire Silicon Laboratories. During the session, the stock fluctuated between $215.06 and $228.21.
This move stands out—Texas Instruments seldom goes after major acquisitions. Here, investors are asked to focus beyond the next quarter. The company aims to expand its presence in embedded wireless connectivity amid patchy chip demand across sectors.
The spotlight shifts back to balance sheets. Traders often penalize acquirers relying heavily on debt financing—sometimes before regulators step in or a single factory line changes hands.
Texas Instruments revealed on Wednesday it will acquire Silicon Labs at $231 per share, valuing the deal at about a 69% premium over Silicon Labs’ last unaffected closing price. The companies anticipate wrapping up the transaction in the first half of 2027. Silicon Labs shares soared 51% in premarket trading, while Texas Instruments dropped 3.5%. The deal carries termination fees of $259 million for Silicon Labs and $499 million for Texas Instruments. (Reuters)
Texas Instruments CEO Haviv Ilan described the acquisition as “a significant milestone” for the company’s embedded processing strategy, highlighting that its manufacturing base “will provide customers dependable supply worldwide.” Silicon Labs CEO Matt Johnson noted that demand for “more connected devices” is fueling growth and said the deal should “accelerate innovation.” (Texas Instruments)
Texas Instruments projects roughly $450 million in yearly manufacturing and operational savings within three years post-close. The company also anticipates the deal will boost earnings per share in its first full year, before factoring in deal-related costs. (Securities and Exchange Commission)
The news comes after a Reuters report late Tuesday revealed Texas Instruments is deep into negotiations for a deal worth about $7 billion, in an industry where chipmakers are increasingly focusing on AI-driven demand. (Reuters)
The real challenge kicks in after the initial headlines fade. Shifting a wireless chip portfolio that depends on external foundries into Texas Instruments’ own fabs won’t happen overnight. Delays or missed cost savings could continue to weigh on the stock.
Silicon Labs shareholders and regulators still need to weigh in, and the gap between signing and closing remains substantial. Should approval drag out or expenses climb, the market’s tentative stance might grow even more wary.
Investors have circled Feb. 24 for Texas Instruments’ upcoming capital management webcast. Executives are set to detail cash-return priorities, now complicated by a substantial, debt-financed acquisition strategy. (Texas Instruments)
