Texas Instruments to Acquire Silicon Labs in Major Semiconductor Consolidation Move
February 4, 2026
In a significant move set to reshape the competitive landscape of the embedded and wireless semiconductor markets, Texas Instruments Incorporated has entered into a definitive agreement to acquire Silicon Laboratories Inc. in an all-cash transaction valued at $7.5 billion. The deal underscores the strategic importance of connectivity and integrated solutions in the era of the Internet of Things (IoT) and industrial automation. The acquisition, announced on February 4, 2026, will see the Dallas-based chipmaking giant absorb the Austin-headquartered fabless semiconductor company. According to the official statement, the transaction is expected to generate approximately $450 million in annual manufacturing and operational revenue synergies within three years of closing. Furthermore, Texas Instruments will integrate roughly 1,200 new products from Silicon Labs' portfolio, significantly expanding its offerings in microcontrollers and wireless connectivity solutions. A key strategic rationale behind the deal is the reshoring of manufacturing capabilities. The combined entity aims to deliver fully integrated process, design, and manufacturing by moving Silicon Labs' production from external foundries to Texas Instruments' own advanced fabrication facilities. The company operates 300mm wafer fabs in Sherman and Richardson, Texas, and Lehi, Utah, bolstered by a $1.61 billion CHIPS Act agreement finalized with the U.S. government in January 2025 to support an $18 billion investment program. Leadership from both companies expressed strong confidence in the merger's potential. Haviv Ilan, chairman, president, and CEO of Texas Instruments, stated, "The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy. Together, we can do more." Matt Johnson, president and CEO of Silicon Labs, echoed this sentiment, noting the shared Texas heritage and adding, "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." The transaction, which is subject to regulatory approvals and other customary closing conditions, is anticipated to be finalized in the first half of 2027. The consolidation is poised to create a more formidable competitor in the semiconductor sector, particularly in providing comprehensive solutions for the growing edge computing and IoT markets, where seamless integration of processing and connectivity is paramount.
Source: datacenterdynamics
