American chip company Texas Instruments have entered an agreement to acquire fabless company Silicon Labs in an all-cash transaction representing about US$7.5 billion.

The acquisition will make Texas Instruments as a global leader in embedded wireless connectivity solutions as it will combine Silicon Labs’ strong portfolio and expertise in mixed signal solutions with Texas Instruments’ analog and embedded processing portfolio and a host of technology and manufacturing capabilities.

Haviv Ilan, Chairman, President, and Chief Executive Officer at Texas Instruments said the company’s technology is optimized for Silicon Labs’ portfolio, which will benefit its customers with dependable supply.

“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,” said Ilan.

Robust Manufacturing, Operational Synergies

The transaction, which is expected to close in the first half of 2027, is expected to generate US$450 million, more or less, in annual manufacturing and operational synergies within three years.

Embedded wireless connectivity solutions is a fast-growing area with more devices getting connected each day. The transaction will expand Texas Instruments’ portfolio with the addition of approximately 1,200 products that support a variety of wireless connectivity standards and protocols.

The combined company will be able to deliver fully-integrated process, design, and manufacturing capabilities by reshoring Silicon Labs’ manufacturing from external foundries to Texas Instruments’ own capacity.

Texas Instruments’ manufacturing footprint includes 300mm wafer fab facilities in the U.S., as well as internal assembly and test capabilities, providing low-cost capacity available at scale for Silicon Labs’ products. Texas Instruments’ defined process technologies, including 28nm, are optimized for Silicon Labs’ wireless connectivity portfolio, enabling more efficient and faster future process technology design cycles.

Texas Instruments will also be able to leverage Silicon Labs’ ability of raising about 15 percent compound annual growth rate (CAGR) since 2014, backed by deeper customer access.

05 February 2026