Texas Instruments has acquired Silicon Labs for $7.5bn to create a giant in embedded wireless connectivity.

The transaction will combine Silicon Labs’ portfolio and expertise in mixed-signal technology with Texas Instruments’ analogue and embedded processing portfolio and internally owned technology and manufacturing capabilities.

“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy,” said Haviv Ilan, CEO of Texas Instruments (ti.com). “Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers. Together, we can do more. The Texas Instruments and Silicon Labs teams share a high-performing culture focused on excellence, engineering and innovation.”

The transaction is expected to generate around $450m in annual manufacturing and operational synergies within three years post-close.

“Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way,” said Matt Johnson, CEO of Silicon Labs (www.silabs.com). “Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices. By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation.”

With breadth and depth across products, technology and customers, the combined company is positioned to be a major provider of embedded wireless connectivity, a fast-growing area with more devices getting connected every day. The transaction expands Texas Instruments’ portfolio with the addition of approximately 1200 products that support various wireless connectivity standards and protocols.

The transaction positions the combined company to deliver fully integrated process, design and manufacturing capabilities by reshoring Silicon Labs’ manufacturing from external foundries, leveraging Texas Instruments’ internally owned capacity.

The agreement has been unanimously approved by the boards of directors of both companies. The transaction is not subject to any financing contingency and is expected to close in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions, including approval by Silicon Labs stockholders.