Texas Instruments Inc. has announced a $7.5 billion all-cash acquisition of Silicon Labs, a move expected to create a leading company in the embedded wireless connectivity market. The merger will combine Texas Instruments’ analog and embedded processing technology with Silicon Labs’ mixed-signal solutions, adding approximately 1,200 new products that support a range of wireless connectivity standards and protocols.
Under the terms of the agreement, Silicon Labs shareholders will receive $231 per share. The transaction has been approved by both companies’ boards of directors and is expected to close in the first half of 2027, pending regulatory approval and consent from Silicon Labs shareholders.
Strategic Benefits and Manufacturing Integration
The acquisition aims to strengthen Texas Instruments’ long-term strategy in embedded processing by expanding its technology portfolio and providing a more reliable global supply of wireless connectivity components. The deal also allows Texas Instruments to reshore Silicon Labs’ manufacturing from external foundries to its own facilities in the United States. These include 300mm wafer fabrication plants, as well as internal assembly and testing operations, which will enable cost-effective, scalable production of the combined product lineup.
Chairman, President, and CEO of Texas Instruments, Haviv Ilan, said the merger is a milestone for the company’s embedded technology ambitions. “The addition of Silicon Labs’ wireless connectivity portfolio enhances our intellectual property and technology capabilities, enabling us to better serve our customers worldwide,” Ilan said.
Matt Johnson, president and CEO of Silicon Labs, also emphasized the opportunities this partnership creates. “By combining our strengths in embedded wireless solutions with Texas Instruments’ scale and manufacturing expertise, we can accelerate innovation and offer customers more comprehensive solutions for connected devices,” Johnson said.
Financial and Market Implications
The merger is expected to generate nearly $500 million in annual manufacturing revenue within three years following the deal’s completion. By consolidating product offerings and manufacturing resources, Texas Instruments plans to increase efficiency and better meet growing global demand for embedded wireless connectivity in industries such as IoT, automotive, and industrial electronics.
Legal and Advisory Teams
The legal advisors guiding the transaction include A&O Shearman representing Texas Instruments and DLA Piper representing Silicon Labs. The teams have assisted with structuring, regulatory compliance, and integration planning, ensuring that the acquisition aligns with both companies’ operational goals.
Outlook
Industry analysts note that the acquisition positions Texas Instruments to strengthen its leadership in embedded wireless technology and expands its ability to offer end-to-end solutions for customers. The combination of Silicon Labs’ portfolio with Texas Instruments’ analog and embedded processing products is expected to drive innovation and provide a broader range of technology solutions across multiple markets.
As the integration process progresses, both companies plan to maintain open communication with customers, suppliers, and stakeholders to ensure a smooth transition. This merger underscores the continued trend of consolidation in the semiconductor industry, particularly in areas critical to the expansion of connected devices and the Internet of Things
