Wedoany.com Report on Feb 5th, Texas Instruments announced on February 4th that it will acquire chip design company Silicon Labs in an all-cash transaction valued at $7.5 billion. The deal has been approved by the boards of directors of both companies and is expected to close in the first half of 2027, pending regulatory and shareholder approvals.
This acquisition will significantly enhance Texas Instruments' competitiveness in the field of embedded wireless connectivity and expand its coverage in fast-growing markets such as industrial, automotive, and the Internet of Things (IoT). As a core player in the analog chip sector, this transaction represents Texas Instruments' largest acquisition since its purchase of National Semiconductor in 2011.
Texas Instruments' business focus is on providing high-reliability, long-lifecycle components for smartphones, vehicles, industrial equipment, and medical instruments. Unlike companies like NVIDIA and AMD, which concentrate on data centers and high-performance AI processors, Texas Instruments is dedicated to developing fundamental chips that ensure stable device operation and support large-scale deployments. Its customers include companies such as Apple, SpaceX, and Ford Motor Company.
In recent years, Silicon Labs has continuously optimized its business structure, focusing on the research, development, and production of chips for connected devices. In 2021, the company sold a portion of its automotive chip assets to Skyworks Solutions for $2.75 billion, further strengthening its position in areas like smart home, smart metering, and industrial IoT.
Embedded processing and wireless connectivity technologies are key enablers for edge AI devices, lightweight machine learning IoT systems, and applications in smart homes, industrial IoT, automotive, and smart cities. Silicon Labs' low-power system-on-chips (SoCs) and Texas Instruments' embedded processors are often used for data acquisition, on-device inference, and connecting sensors to cloud-based AI services.
Texas Instruments expects the acquisition to achieve approximately $450 million in annual manufacturing and operational cost savings within three years of the deal's closing, primarily from integrating Silicon Labs' production into its own manufacturing system.
This merger also reflects a trend in the semiconductor industry: companies are consolidating around their technological strengths to meet the growing market demand for intelligent, interconnected systems. As AI applications become more widespread, the performance and reliability requirements for sensors, connectivity chips, and embedded processors in edge devices continue to increase.
