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Stock Markets February 4, 2026

Texas Instruments to Acquire Silicon Laboratories in $7.5 Billion Deal to Broaden Wireless Connectivity Portfolio

Deal marks TI's largest purchase since 2011 and targets expansion into chips for connected devices across industrial and consumer markets

By Jordan Park
Texas Instruments to Acquire Silicon Laboratories in $7.5 Billion Deal to Broaden Wireless Connectivity Portfolio

Texas Instruments has reached an agreement to buy Silicon Laboratories for $7.5 billion, paying $231 per share in a transaction designed to bolster TI's position in wireless connectivity chips used in industrial and consumer equipment. The deal, advised exclusively by Goldman Sachs to TI, carries termination fees for both parties and is expected to close in the first half of 2027, financed through cash and debt while yielding operational savings.

Key Points

  • Texas Instruments will acquire Silicon Laboratories for $7.5 billion, paying $231 per share, about a 69% premium to the last unaffected close.
  • The deal expands TI's presence in wireless connectivity chips for industrial and consumer applications and is its largest acquisition since the 2011 National Semiconductor purchase.
  • Transaction expected to close in the first half of 2027, financed with cash on hand and debt, and expected to deliver about $450 million in annual manufacturing and operational savings within three years of close.

Texas Instruments announced on Wednesday that it will acquire Silicon Laboratories in a transaction valuing the chip designer at $7.5 billion. The purchase, aimed at expanding Texas Instruments' footprint in wireless connectivity semiconductors used across industrial and consumer applications, will see Silicon Laboratories shareholders receive $231 per share.

The $231 per share offer represents roughly a 69% premium to Silicon Laboratories' last unaffected closing price on Tuesday, when talks of the transaction first emerged. Following the announcement, Silicon Laboratories' stock surged about 51% in premarket trading, while Texas Instruments' shares declined approximately 3.5%.

For Texas Instruments, best known for its strength in analog chips that control signals and power in electronic equipment, the acquisition is the company's largest since its $6.5 billion purchase of National Semiconductor in 2011. Unlike firms focused on AI accelerators, Texas Instruments concentrates on foundational chips deployed in everyday devices - from smartphones and automobiles to medical instruments - and serves a broad client base that includes Apple, SpaceX and Ford Motor.

Silicon Laboratories has been refining its business mix in recent years. In 2021 it sold certain automotive chip assets and other product lines to Skyworks Solutions for $2.75 billion. That divestment was framed as a move to concentrate on semiconductors for connected devices such as smart home products, power meters and connected industrial equipment that gather data to enhance efficiency.

Under the terms of the acquisition agreement, either party faces contractual termination fees should the deal not close: Silicon Laboratories would owe $259 million if it abandons the agreement, while Texas Instruments would be required to pay $499 million if it walked away.

Goldman Sachs is serving as the exclusive financial adviser to Texas Instruments on the transaction. The companies expect the deal to close in the first half of 2027. Texas Instruments plans to fund the purchase with a combination of cash on hand and debt.

Management projects that the acquisition will produce about $450 million in annual manufacturing and operational savings within three years following deal close. The anticipated cost synergies are presented as part of the financial rationale for bringing Silicon Laboratories into Texas Instruments' portfolio.

Impacted sectors:

  • Semiconductor manufacturing and design
  • Connected industrial equipment and consumer smart devices
  • Automotive electronics and medical device suppliers

Risks

  • Either company could terminate the agreement and trigger a negotiated breakup fee - Silicon Laboratories would pay $259 million if it abandons the deal and Texas Instruments would pay $499 million if it walks away, which could affect deal certainty and financial outcomes.
  • The transaction timing and completion are contingent on reaching closing conditions by the first half of 2027, leaving potential exposure to customary execution and regulatory uncertainties through that period.
  • Expected savings of roughly $450 million in annual manufacturing and operational costs are projections tied to successful integration; failure to realize those synergies could alter financial benefits.

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