Texas Instruments Buys Silicon Labs for $7.5B

Announced: February 4, 2026

Texas Instruments announced today it will acquire Silicon Labs for $7.5 billion in cash. The deal price is $231 per share, about 69% over Tuesday's close before talks were reported. Both boards approved the transaction, which should close in the first half of 2027 pending regulatory and shareholder approvals.

Silicon Labs, based in Austin, makes wireless connectivity chips for IoT applications: Bluetooth, Wi-Fi, Zigbee, Z-Wave, and similar protocols used in smart home devices, industrial equipment, and wearables. Founded in 1996, the company has posted approximately 15% compound annual revenue growth since 2014. The acquisition adds around 1,200 wireless products to TI's portfolio.

For TI, this fills a gap. The company dominates analog chips, microcontrollers, sensors, and power management, but lacked a strong wireless connectivity lineup. With Silicon Labs, TI can offer customers a more complete solution: sensors, analog circuits, microcontrollers, and wireless transceivers from one supplier.

TI plans to move Silicon Labs' chip production in-house. Silicon Labs is fabless and outsources manufacturing. TI owns multiple 300mm fabs and will transition production to its facilities using 28nm and other process technologies. The company expects about $450 million in annual cost savings within three years, mostly from this manufacturing consolidation. TI also projects the deal will be earnings accretive in the first full year after closing.

This is TI's largest acquisition since buying National Semiconductor for $6.5 billion in 2011. That deal also focused on expanding TI's analog capabilities and bringing manufacturing in-house.

The semiconductor industry has been consolidating around IoT and wireless connectivity. Infineon bought Cypress Semiconductor for $10 billion in 2020 for similar reasons adding Wi-Fi, Bluetooth, and microcontroller capabilities. NXP, STMicroelectronics, and Microchip have all been expanding in this space through acquisitions or internal development.

After the deal closes, TI will have significant scale in embedded wireless connectivity. For smaller connectivity specialists like Nordic Semiconductor, that puts more competitive pressure on the market. Silicon Labs customers get access to TI's manufacturing capacity and supply chain, though they'll need to watch how product roadmaps evolve during integration.

TI will finance the acquisition with cash and new debt. Goldman Sachs is advising TI on the transaction. The merger agreement includes standard termination fees: Silicon Labs pays $259 million if it walks away for a superior proposal, TI pays $499 million under certain regulatory failure scenarios.

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