Texas Instruments to buy Austin-based Silicon Labs for $7.5 billion, expanding embedded wireless connectivity portfolio

Deal structure and timeline

Texas Instruments has signed a definitive agreement to acquire Austin-based Silicon Laboratories in an all-cash transaction valued at approximately $7.5 billion. Under the terms announced Wednesday, February 4, 2026, Silicon Labs shareholders would receive $231 per share.

The companies said the transaction is expected to close in 2027, subject to customary conditions including regulatory approvals and approval by Silicon Labs stockholders. Texas Instruments said it expects to finance the acquisition using cash on hand and debt financing that has not yet been arranged.

What each company brings to the combination

Texas Instruments, headquartered in Dallas, is a long-established manufacturer of analog and embedded processing semiconductors and operates its own fabrication network. Silicon Labs is a fabless chip designer that focuses on embedded wireless connectivity, relying on external foundries for manufacturing.

Texas Instruments said the acquisition is intended to strengthen its position in embedded wireless connectivity by adding Silicon Labs’ product portfolio and intellectual property to TI’s analog and embedded processing lineup. The companies described the combination as a way to broaden customer reach and expand the set of connectivity solutions that can be offered alongside TI’s existing components used across industrial, automotive and consumer markets.

Manufacturing shift and projected synergies

Texas Instruments said it plans to transition Silicon Labs’ manufacturing from third-party foundries to TI’s internal manufacturing operations over time. The companies have also projected approximately $450 million in annual manufacturing and operational synergies within three years after the deal closes.

The transaction arrives as Texas Instruments continues a multi-year expansion of U.S. manufacturing capacity, including large-scale investments in 300mm wafer fabrication in Texas and Utah. Those investments are designed to increase internal output of high-volume analog and embedded processing chips, a category often described as “foundational” to a broad range of electronic systems.

Financial context and recent history

Silicon Labs reported revenue of $785 million in 2025. Texas Instruments reported revenue of $15.6 billion in 2024.

For Texas Instruments, the Silicon Labs deal represents the company’s first major acquisition since its 2011 purchase of National Semiconductor for $6.5 billion. If completed, the acquisition would also be among the largest transactions in the U.S. analog and mixed-signal semiconductor segment in more than a decade.

Key points

• All-cash acquisition valued at about $7.5 billion, at $231 per share.
• Expected closing in 2027, pending regulatory and shareholder approvals.
• Plan to shift Silicon Labs production from external foundries to TI’s internal manufacturing.
• Projected ~$450 million in annual synergies within three years post-close.

The companies said the combination is intended to pair Silicon Labs’ embedded wireless connectivity portfolio with Texas Instruments’ scale, manufacturing footprint and customer channels.