Finance
Texas Instruments to buy chip designer Silicon Labs in $7.5 billion deal
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Texas Instruments acquires Silicon Laboratories for $7.5 billion, expanding its wireless connectivity chip portfolio for industrial and consumer applications.
Feb 4 (Reuters) - Texas Instruments on Wednesday agreed to buy Silicon Laboratories in a deal valuing the chip designer at $7.5 billion, expanding its footprint in wireless connectivity chips used for industrial and consumer applications.
For Texas, whose core strength lies in analog chips that manage signals and power in electronic equipment, the acquisition marks its biggest since the $6.5 billion deal for National Semiconductor in 2011.
Unlike AI chip firms Nvidia and AMD, Texas Instruments focuses on foundational chips used in everyday devices such as smartphones, cars and medical devices, giving it a large client base that includes Apple, SpaceX and Ford Motor.
Texas will acquire Silicon Labs for $231 per share, implying a premium of about 69% to the stock's last unaffected closing price on Tuesday, when the deal talks were first reported. Silicon shares jumped 24% in premarket trading, while Texas was down 3.5%.
Silicon had sold some automotive chip assets and other lines of business to Skyworks Solutions for $2.75 billion in 2021.
The divestment was aimed at sharpening its focus on chips for connected devices such as smart home products, smart power meters and connected industrial equipment that collect data to improve efficiency.
Under the terms of the latest agreement, Silicon would pay a $259 million termination fee if it walks away from the deal, while Texas would pay $499 million if it abandons the transaction.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. This can enhance market presence and expand product offerings.
Wireless connectivity chips are electronic components that enable devices to communicate wirelessly. They are essential for applications in both industrial and consumer electronics.
Texas Instruments is an American technology company known for designing and manufacturing semiconductors and various integrated circuits, which are used in a wide range of electronic devices.
Silicon Laboratories is a semiconductor company that specializes in microcontrollers, wireless chips, and other technology solutions for various applications, including IoT and industrial automation.
A $7.5 billion deal signifies a substantial financial transaction that can impact market dynamics, influence company growth, and alter competitive landscapes within the industry.
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