Texas Instruments announced a $7.5 billion cash deal to buy Silicon Labs to create a global leader in embedded wireless connectivity products.
TI sees advantages in combining its leading analog and embedded processing and manufacturing prowess combined with Silicon Labs’ broad portfolio and expertise in mixed signal solutions. CEO Hviv Ilan said TI’s technology is “optimized” for Silicon Labs’ portfolio.
TI expects to see its portfolio expanded by 1,200 products that support wireless connectivity standards. Meanwhile, TI’s 300mm wafer fabs in the US will provide low-cost capacity for Silicon Labs products. And, TI’s process tech, including 28nm, is optimized to support the Silicon Labs’ wireless portfolio.
TI cited Silicon Labs’ ability to deliver 15% annual revenue growth since 2014. The transaction is expected to generate $450 million in annual manufacturing and operational revenues within three years after the deal closes, expected in the first half of 2027. The deal is all-cash and has been approved by the boards of both companies. TI is paying $231 per share of Silicon Labs.
Silicon Labs stock soared more than 48% on the news, while TI saw its stock decline more than 1.6%.