Austin, February 5, 2026
Texas Instruments has announced its plan to acquire Austin’s Silicon Laboratories in a landmark $7.5 billion all-cash deal. This acquisition aims to enhance TI’s foothold in the embedded wireless connectivity sector while fostering growth and innovation in the Texas tech landscape. With an expected closing in 2027, TI anticipates significant synergies and operational improvements to follow, marking a strategic expansion for the global semiconductor leader.
Texas Instruments to Acquire Austin’s Silicon Laboratories for $7.5 Billion
A significant merger poised to reshape the embedded wireless connectivity market.
Dallas, Texas – In a bold move showcasing the dynamism of the Texas tech scene, Texas Instruments (TI) has entered a definitive agreement to acquire Austin-based Silicon Laboratories for approximately $7.5 billion in an all-cash transaction. This strategic acquisition not only enhances TI’s competitive edge in the embedded wireless connectivity market but also highlights the resilience and innovation of Austin’s local business landscape.
With Texas being a hub for technology and innovation, this acquisition emphasizes the potential of local entrepreneurs and firms to thrive under advantageous business conditions. As Texas Instruments integrates Silicon Labs’ capabilities, the potential for job creation and technological advancement in the area will be significant, affirming the advantages of a supportive regulatory environment for businesses.
Transaction Details
Under the terms of the agreement, Silicon Labs’ shareholders will receive $231.00 per share in cash. The deal is expected to close in the first half of 2027, pending regulatory approvals and other customary closing conditions.
Strategic Rationale
This acquisition is projected to forge a global leader in embedded wireless connectivity solutions by combining Silicon Labs’ innovative portfolio with TI’s extensive analog and embedded processing capabilities. Anticipated synergies are projected to yield approximately $450 million in annual manufacturing and operational improvements within three years post-close, thereby positioning the new entity for accelerated growth and innovation.
Financial Impact
Texas Instruments plans to finance the acquisition via a combination of cash on hand and debt financing. The company anticipates this transaction to be accretive to its earnings per share in the first full year after the deal closes, excluding any transaction-related expenses. This financial strategy underscores TI’s confidence in the value and growth potential of the combined company.
Background
Silicon Laboratories, a fabless chip manufacturer, is highly regarded for its wireless connectivity solutions. The company streamlined its focus in 2021 by selling off certain automotive chip assets to Skyworks Solutions for $2.75 billion, concentrating instead on providing chips for connected devices like smart home technology and industrial applications.
Market Reaction
Upon the announcement, shares of Silicon Labs skyrocketed by 49% in premarket trading, reaching their highest level in four years. Conversely, shares of Texas Instruments experienced a marked decline of 3.5%, which highlights the typical market reactions during significant mergers.
About Texas Instruments
Texas Instruments stands as a global leader in the semiconductor sector, designing, manufacturing, and selling analog and embedded processing chips. TI serves a wide range of industries—including automotive, industrial, and consumer electronics—signifying its integral role in the technological fabric of modern economies.
About Silicon Laboratories
Silicon Laboratories has carved its niche as a fabless semiconductor company, excelling in secure and intelligent wireless technology. Its solutions are central to the expanding markets for connected devices across various sectors, including smart home products and industrial equipment.
Investor Webcast
In light of this significant acquisition, Texas Instruments will conduct an investor webcast scheduled for today at 7 a.m. Central time to discuss the transaction further and address inquiries from stakeholders.
Frequently Asked Questions (FAQ)
What is the acquisition deal between Texas Instruments and Silicon Labs?
Texas Instruments has announced a definitive agreement to acquire Austin-based Silicon Laboratories for approximately $7.5 billion in an all-cash transaction.
How much will Silicon Labs’ shareholders receive per share?
Silicon Labs’ shareholders will receive $231.00 per share in cash.
When is the acquisition expected to close?
The deal is expected to close in the first half of 2027, pending regulatory approvals and other customary closing conditions.
How does this acquisition benefit Texas Instruments?
The acquisition aims to create a global leader in embedded wireless connectivity solutions by combining Silicon Labs’ portfolio with TI’s analog and embedded processing capabilities. This merger is anticipated to generate approximately $450 million in annual manufacturing and operational synergies within three years post-close.
How will the acquisition be financed?
TI plans to finance the acquisition using a combination of cash on hand and debt financing. The company expects the transaction to be accretive to its earnings per share in the first full year post-close, excluding transaction-related costs.
What is the background of Silicon Laboratories?
Silicon Labs is a fabless chip maker specializing in wireless connectivity solutions. In 2021, the company sold certain automotive chip assets to Skyworks Solutions for $2.75 billion to focus on chips for connected devices such as smart home products and industrial equipment.
How did the market react to the acquisition announcement?
Following the announcement, Silicon Labs’ shares surged by 49% in premarket trading, reaching their highest level in four years. In contrast, TI’s stock experienced a decline of 3.5%.
What is the significance of this acquisition for Texas Instruments?
This acquisition marks TI’s largest since the $6.5 billion deal for National Semiconductor in 2011. It aims to strengthen TI’s position in the embedded wireless connectivity market and expand its product portfolio.
| Feature | Details |
|---|---|
| Acquisition Value | $7.5 billion |
| Shareholder Payment | $231.00 per share in cash |
| Expected Closing Date | First half of 2027 |
| Anticipated Synergies | Approximately $450 million annually within three years post-close |
| Financing Method | Combination of cash on hand and debt financing |
| Market Reaction | Silicon Labs’ shares surged by 49%; TI’s stock declined by 3.5% |
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