Texas Instruments to Acquire Austin-based Silicon Labs in $7.5 Billion Deal

Austin-based semiconductor maker Silicon Labs is being acquired by Texas Instruments in an all-cash transaction valued at approximately $7.5 billion, marking one of the biggest deals in the company’s recent history. The definitive agreement was announced this week by both companies.

Under the terms of the deal, Silicon Labs shareholders will receive $231 in cash per share in what represents a significant premium over the company’s prior market valuation. The boards of both firms have unanimously approved the transaction, which is expected to close in the first half of 2027, pending regulatory and customary closing conditions, including shareholder approval.

The acquisition is designed to expand Texas Instruments’ footprint in embedded wireless connectivity solutions by combining Silicon Labs’ portfolio of mixed-signal and wireless technologies with TI’s established analog and embedded processing products and manufacturing capabilities. The move is seen as a strategic effort to strengthen the combined company’s position in markets ranging from industrial and automotive to IoT and consumer electronics.

Executives from both companies highlighted shared Texas roots and a focus on long-term innovation. TI Chairman, President and CEO Haviv Ilan said the deal “strengthens our long-term embedded processing strategy,” while Silicon Labs President and CEO Matt Johnson emphasized the opportunity to accelerate growth through broader market access and combined technological strengths.

The deal is expected to generate approximately $450 million in annual manufacturing and operational synergies within three years of closing and will add roughly 1,200 products to Texas Instruments’ existing portfolio, expanding the company’s offerings in wireless connectivity standards and protocols.