Texas Instruments agreed to acquire Silicon Labs in an all-cash transaction valued at approximately $7.5 billion, strengthening its position in embedded wireless connectivity. The deal, announced February 4, 2026, values Silicon Labs at $231.00 per share and expands Texas Instruments’ portfolio with roughly 1,200 wireless connectivity products spanning multiple standards and protocols.
The acquisition aligns Silicon Labs’ mixed-signal and wireless expertise with Texas Instruments’ analog and embedded processing platforms and its internally owned manufacturing base. Texas Instruments plans to shift Silicon Labs’ production from external foundries to its own 300 mm fabs and assembly/test operations, targeting improved cost structure, supply assurance, and tighter design-to-manufacturing integration using defined process nodes such as 28 nm.
Texas Instruments expects the transaction to generate about $450 million in annual manufacturing and operational synergies within three years of closing. The companies anticipate closing in the first half of 2027, subject to regulatory and shareholder approvals. Texas Instruments said the deal will be accretive to earnings per share in the first full year post-close, excluding transaction-related costs, while maintaining its capital return strategy.
- Acquirer: Texas Instruments
- Target: Silicon Labs
- Transaction value: ~$7.5 billion enterprise value
- Offer: $231.00 per Silicon Labs share, all cash
- Synergies: ~$450 million annually within three years
- Close: Expected H1 2027, pending approvals
“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy,” said Haviv Ilan, chairman, president and CEO of Texas Instruments.
🌐 Analysis
The transaction extends Texas Instruments’ long-running strategy of pairing broad embedded portfolios with captive manufacturing, following years of investment in U.S.-based 300 mm capacity. It also places Texas Instruments more directly against peers such as NXP and Infineon in industrial and automotive wireless connectivity, where scale, cost control, and supply resilience increasingly shape customer sourcing decisions.
Silicon Labs is a fabless semiconductor company headquartered in Austin, Texas, focused on low-power wireless connectivity for the Internet of Things (IoT). Founded in 1996 by Nav Sooch, the company has evolved into a pure-play IoT silicon provider following the divestiture of its Infrastructure & Automotive business to Skyworks Solutions in 2021. Led by President and CEO Matt Johnson, Silicon Labs’ mission centers on enabling secure, energy-efficient, and scalable wireless devices. Its core technology portfolio includes integrated wireless SoCs, MCUs, and software stacks supporting standards such as Bluetooth Low Energy, Zigbee, Thread, Matter, Wi-Fi, and proprietary sub-GHz protocols, complemented by security IP and development tools. The company’s products are widely used in smart home, industrial, commercial building, and smart city applications, and it maintains close ecosystem partnerships with platform providers, module makers, and cloud and standards organizations. Silicon Labs is publicly traded on NASDAQ under the ticker SLAB and has positioned interoperability and Matter-ready solutions as key milestones in its recent product roadmap.
