TI Silicon Labs acquisition: TI to buy Silicon Labs for $7.5bn
Texas Instruments has agreed to acquire Silicon Labs in an all-cash deal valued at about $7.5 billion, a move TI says will strengthen its position in embedded wireless connectivity and broaden its reach across industrial, smart home and other connected-device markets. The companies announced the transaction in a joint TI news release.
Under the terms, Silicon Labs shareholders would receive $231.00 per share in cash. TI says it expects to fund the purchase with cash on hand plus debt financing arranged ahead of closing, and that the deal is not subject to a financing condition. The companies are targeting completion in the first half of 2027, subject to regulatory approvals and Silicon Labs shareholder approval.
What the TI Silicon Labs acquisition adds
TI pitches the TI Silicon Labs acquisition as a way to pair Silicon Labs’ “secure, intelligent wireless” portfolio with TI’s scale in analogue and embedded processing, plus its internal manufacturing footprint. In the announcement, TI said the combination would add roughly 1,200 Silicon Labs products spanning multiple wireless standards and protocols, and that TI’s defined process nodes (including 28 nm) are a good fit for that portfolio.
A key part of the story is manufacturing. TI explicitly framed the TI Silicon Labs acquisition as an opportunity to “reshore” Silicon Labs’ production away from external foundries and into TI’s own 300 mm wafer fabs and internal assembly and test operations, aiming for more predictable supply and lower cost at scale.
TI Silicon Labs acquisition: costs, savings and context
TI expects the deal to deliver about $450 million in annual manufacturing and operational synergies within three years of closing. Reuters reported the purchase price represents a sizeable premium versus Silicon Labs’ prior unaffected share price, and described this as TI’s largest acquisition since National Semiconductor in 2011. (Reuters coverage)
Strategically, it also lands at a time when TI is spending heavily to expand its US manufacturing base; as previously reported by eeNews Europe, TI has reiterated and expanded its US fab investment plans. The TI Silicon Labs acquisition leans into the same theme: scaling supply and cost structure in categories where long lifecycle, dependable availability and margin discipline matter as much as headline performance.
Haviv Ilan, TI’s chairman, president and CEO, said the transaction strengthens TI’s long-term embedded processing strategy, while Silicon Labs CEO Matt Johnson highlighted the firms’ shared Texas base and the growth tailwinds from rising device connectivity.
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