en.Wedoany.com Reported - Onsemi has signed a definitive agreement to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, a move aimed at strengthening its position in the rapidly growing Physical AI market.
The acquisition combines Onsemi's capabilities in power and sensing technologies with Synaptics' edge AI computing, human-machine interface, and wireless connectivity product lines, aiming to build a broader intelligent systems platform. The companies expect the combined business to cover areas such as automotive, industrial, robotics, AI infrastructure, and smart edge applications, thereby significantly expanding the market reach.
Under the agreement, Synaptics shareholders will receive 1.350 shares of Onsemi common stock for each share held, with the consideration based on the 10-day volume-weighted average closing price of the two companies, representing a premium of approximately 19%. The transaction is expected to close by mid-2027, subject to shareholder and regulatory approvals.
Onsemi expects the acquisition to expand its total addressable market by $30 billion, reaching $243 billion by 2030. By integrating Synaptics' edge AI computing platform, software ecosystem, wireless connectivity, and sensing technologies, Onsemi aims to become a leading provider of intelligent systems built around the four pillars of Physical AI—power, perception, connected computing, and control. This integrated platform will enable machines to perceive, decide, act, and adapt in real time across a wide range of edge AI applications.
Financially, Onsemi expects the transaction to increase non-GAAP earnings per share within 18 months of closing and generate approximately $200 million in annual cost and revenue synergies. The company also anticipates that the deal will support long-term gross margin improvement and deepen customer engagement through integrated hardware and software solutions.
Following the announcement, Onsemi's shares fell nearly 10% in after-hours trading, while Synaptics' shares rose more than 10%, reflecting investor expectations for the acquisition.
Prior to this acquisition, Onsemi had executed several technology-driven acquisitions to strengthen its leadership in silicon carbide (SiC), intelligent sensing, and edge computing. In July 2024, Onsemi acquired SWIR Vision Systems, expanding its intelligent sensing portfolio with colloidal quantum dot (CQD) shortwave infrared (SWIR) imaging technology, enabling cameras to penetrate dense materials, gases, fabrics, and plastics for applications in industrial inspection, machine vision, surveillance, automotive, and autonomous driving. The financial terms of that transaction were not disclosed, and the acquisition team has joined Onsemi's Intelligent Sensing Group. In November 2021, Onsemi completed the acquisition of GT Advanced Technologies (GTAT) for $415 million in cash, significantly strengthening its silicon carbide supply chain by adding crystal growth and wafer manufacturing capabilities, supporting the growing demand for SiC semiconductors in electric vehicles, charging infrastructure, renewable energy, and industrial power systems, while accelerating investments in 150mm and 200mm SiC wafer technologies.
The $7 billion acquisition of Synaptics reflects Onsemi's strategy to go beyond AI data centers and capture the next wave of AI growth in the intelligent edge, where demand is rising for autonomous driving, robotics, industrial automation, smart devices, and other Physical AI applications.
