New York, Feb 5, 2026, 19:22 EST — After-hours
Texas Instruments (TXN) saw its shares rise 0.5% in after-hours trading Thursday, ending at $223.98 after closing the regular session at $222.82. The stock swung between $219.10 and $225.80 throughout the day.
The news comes just a day after the analog chipmaker unveiled its biggest acquisition in more than a decade—a $7.5 billion all-cash purchase of Silicon Labs. Traders are now weighing the steep premium, the drawn-out closing schedule, and how the deal’s financing might affect buybacks and dividends.
Texas Instruments is pitching the acquisition as a faster way to break into embedded wireless connectivity — the chips that let devices talk in factories, homes, and commercial gear — all while leaning on its own fabs rather than outside foundries.
Texas Instruments is set to acquire Silicon Labs (SLAB) for $231 per share, aiming to cut about $450 million in manufacturing and operating costs annually within three years post-close. CEO Haviv Ilan called the deal “a significant milestone” for TI’s embedded strategy. Silicon Labs CEO Matt Johnson highlighted that the combined portfolios and TI’s scale will “serve more customers and accelerate innovation,” the companies said. 1
The $231-per-share bid puts Silicon Labs at about a 69% premium over its last unaffected closing price. If the deal goes through, it would be Texas Instruments’ largest acquisition since its $6.5 billion purchase of National Semiconductor in 2011. Stifel analysts describe the merger as a potentially strong wireless-analog combo. The deal also includes termination fees of $259 million for Silicon Labs and $499 million for Texas Instruments, Reuters reports. 2
A Rule 425 filing revealed an internal TI message sent after the announcement, calling the deal a step to “accelerate our progress” in embedded processing. It pointed to Silicon Labs’ roughly 1,200 products spanning multiple wireless standards. The message also noted that wireless connectivity is growing faster than the broader semiconductor market. 3
TXN investors are zeroed in not on product overlap but on pace—how quickly TI can move Silicon Labs’ portfolio onto its fabs and whether the expected cost savings materialize as planned. The company confirmed it will fund the acquisition through a combination of cash and debt, with no financing contingency attached to the deal.
TI’s upcoming capital management review is high on the agenda as investors seek details on cash returns, capital expenditures, and debt thresholds. The company said it will webcast the session on Feb. 24 at 10 a.m. Central, with Ilan, CFO Rafael Lizardi, and IR chief Mike Beckman taking part. 4
Disappointment is still on the table. The deal hinges on regulatory approvals and a vote from Silicon Labs shareholders, potentially pushing back the timeline. The longer the wait, the higher the chance that changes in macro demand or pricing for industrial and consumer electronics will affect the outcome.
With Friday’s session nearing, investors are watching to see if TXN can hold onto its recent gains amid the market digesting the premium and funding plan. Attention will also focus on any fresh news regarding the approval process and integration before the Feb. 24 capital management webcast.
