Texas Instruments Splashes the Cash on a $7.5 Billion Deal to Acquire Silicon Labs

Texas Instruments has announced a $7.5 billion all-cash deal, expected to close in the first half of next year, to acquire low-power embedded specialist Silicon Labs.

"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," claims Texas Instruments chair, president, and chief executive officer Haviv Ilan of the deal.

"Texas Instruments' industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs' portfolio, and will provide customers dependable supply worldwide :Together, we can do more. The Texas Instruments and Silicon Labs teams share a high-performing culture focused on excellence, engineering and innovation, and I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments' shareholders."

"Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way," adds Silicon Labs president and chief executive officer Matt Johnson. "Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices. The opportunity ahead is significant for both Texas Instruments and Silicon Labs. By combining our embedded wireless connectivity portfolio with Texas Instruments' scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation."

Founded in 1996 by Nav Sooch, Dave Welland, and Jeff Scott, all formerly of Crystal Semiconductor, Silicon Labs made an early name for itself with a cost- and area-reduced data access arrangement (DAA) chip for telecoms networks followed by radio-frequency chips for early mobile phones. In more recent years the company has focused on energy-efficient parts for the Internet of Things, and most recently sold its infrastructure and automotive business arms to Skyworks Solution in a $2.75 billion deal.

Now, though, the whole company is being snapped up by Texas Instruments — a fellow Austin, Texas native that traces its history back to 1930 under the name Geophysical Service Incorporated. The deal will see Silicon Labs integrated into Texas Instruments itself, and is being funded by cash-on-hand and debt at $231 per share — for a total value of around $7.5 billion. SiLabs' product lines will be integrated into the Texas Instruments portfolio, the company has confirmed, and production will be "reshored" into Texas Instruments' own fabrication facilities.

The deal has been approved by both companies' boards, but will need the usual regulatory approvals before its anticipated close in the first half of 2027.