Texas Instruments acquires Silicon Labs for $7.5B in major wireless and IoT push

Texas Instruments just made one of its boldest moves in years.

The analog chip giant has agreed to acquire Silicon Labs for $7.5 billion in cash, a deal that signals a sharper focus on wireless connectivity and the quiet infrastructure behind the internet of things (IoT), the company said Wednesday. The transaction values Silicon Labs at $231 per share, a roughly 69% premium over its last unaffected closing price before reports of the talks surfaced.

The deal shifts attention away from headline-grabbing AI accelerators and back to the chips that sit inside everyday devices. Texas Instruments has built its reputation on analog and embedded processors that manage power, signals, and control across phones, vehicles, factory equipment, and medical hardware. Silicon Labs offers a deep catalog of wireless connectivity chips that link devices using protocols that enable sensors, machines, and consumer products to communicate.

That combination pushes Texas Instruments deeper into IoT markets without changing its core identity. This is not a sudden pivot into training massive models or competing with AI chip leaders like Nvidia or AMD. Instead, it reinforces a long-running strategy focused on scale, durability, and broad customer reach.

“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy. Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers. Texas Instruments’ industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide,” said Haviv Ilan, chairman, president and chief executive officer of Texas Instruments.

Texas Instruments already supplies chips to companies such as Apple, SpaceX, and Ford Motor. Adding Silicon Labs expands that footprint into wireless links that sit closer to the edge, inside devices that rarely make headlines yet ship in huge volumes year after year.

Executives from both companies framed the deal as a natural fit. Texas Instruments CEO Haviv Ilan described the acquisition as a milestone for its embedded processing strategy, pointing to Silicon Labs’ wireless portfolio and the advantage of pairing it with Texas Instruments’ internal manufacturing. Silicon Labs CEO Matt Johnson highlighted shared roots in Texas and a long view on building technology companies with staying power, citing steady growth driven by rising demand for connected devices.

Why Texas Instruments Is Paying a 69% Premium for Silicon Labs’ Wireless Chip Business

Behind the strategic language sits a manufacturing angle that matters. Texas Instruments plans to bring Silicon Labs’ production in-house, moving it off external foundries and onto its own 300-millimeter wafer fabs in the U.S. That shift aims to lower costs, tighten supply control, and speed future design cycles across common process technologies.

The companies expect meaningful financial upside from the integration. Texas Instruments projects roughly $450 million in annual manufacturing and operational synergies within three years after closing. The deal is expected to add to earnings per share in the first full year following completion, excluding transaction costs.

Funding will come from a mix of cash and debt, with no financing contingency attached. The acquisition has unanimous board approval from both sides and now heads toward regulatory review and a shareholder vote at Silicon Labs. Closing is targeted for the first half of 2027.

In a semiconductor industry captivated by AI hype, this deal lands as a reminder of where volume, margins, and longevity still live. Wireless connectivity may lack flash, yet it remains the connective tissue of modern electronics. Texas Instruments is betting $7.5 billion that owning more of that layer will pay off for decades, not quarters.