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Texas Instruments to Buy Silicon Labs in $7.5 Billion Wireless Chip Deal

By  |  February 4, 2026

Texas Instruments said on Wednesday it had reached an agreement to buy chip designer Silicon Laboratories in a cash deal valued at roughly $7.5 billion, a move aimed at strengthening its position in wireless connectivity technology used across industrial and consumer electronics, according Reuters. The transaction represents a major expansion for Texas Instruments, which has traditionally focused on analog semiconductors that manage power and signals inside electronic devices.

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    The acquisition will be the largest for Texas Instruments in more than a decade. Its previous biggest purchase was National Semiconductor in 2011 for $6.5 billion, per Reuters. While rivals such as Nvidia and AMD are widely associated with artificial intelligence processors, Texas Instruments concentrates on chips that serve everyday products including cars, smartphones and medical equipment, giving it a customer base that includes Apple, SpaceX and Ford, according Reuters.

    Under the terms of the agreement, Texas Instruments will pay $231 per share in cash for Silicon Labs, a price that represents a premium of about 69% over the company’s last unaffected closing price before news of the talks became public, according Reuters. Following the announcement, Silicon Labs shares surged 49% to their highest level in four years, highlighting investor enthusiasm for the deal, per Reuters.

    Read more: OpenAI Urges Trump Administration to Expand Chips Act Incentives for AI Infrastructure

    Silicon Labs has been reshaping its business in recent years. In 2021, it sold automotive chip operations and other businesses to Skyworks Solutions for $2.75 billion to concentrate more heavily on connected-device markets such as smart homes, power meters and industrial equipment, according Reuters. Analysts at Stifel said the combination of Texas Instruments’ broad analog capabilities and Silicon Labs’ wireless expertise could form one of the industry’s strongest wireless-analog product portfolios, per Reuters.

    Texas Instruments plans to fund the acquisition using a mix of cash and new debt, according Reuters. The company expects the transaction to deliver about $450 million in annual manufacturing and operational cost savings within three years of completion, which is projected for the first half of 2027, per Reuters.

    The deal also includes breakup protections for both sides. Silicon Labs would owe a termination fee of $259 million if it withdraws, while Texas Instruments would be required to pay $499 million should it decide to abandon the agreement, according Reuters.

    Source: Reuters