Texas Instruments is spending $7.5 billion to buy Austin-based tech firm Silicon Labs to extend its chips enterprise.
The pair reached a definitive acquisition agreement announced Wednesday, an all-cash transaction that would grant Silicon Labs shareholders $231 per share. The deal is expected to close in 2027, pending regulatory and shareholder approval.
Silicon Labs is a fabless chip maker, meaning it designs but outsources the manufacturing of semiconductors, with a focus on wireless connectivity.
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The arrangement is complementary for the Dallas-based tech giant. The integrated device manufacturer makes embedded processing chips and analog chips (which process continuous information like temperature or sound rather than binary data).
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“Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers,” Haviv Ilan, chairman, president and chief executive officer of Texas Instruments, said in a statement.
“Texas Instruments’ industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide,” he added.
Silicon Labs recorded $785 million in revenue in 2025, while Texas Instruments had revenues of $15.6 billion in 2024.
The deal will transfer manufacturing of Silicon Labs’ chips from external foundries to Texas Instruments, which unveiled a $30 billion semiconductor factory in Sherman in December, according to the release.
An investor presentation highlighted Silicon Labs’ engineering capacity — 70% of its employee base is dedicated to engineering — and its more than 1,500 patents related to wireless connectivity.
Additionally, around 85% of Silicon Labs’ customers come from the industrial market, per the presentation.
“Our focus on engineering innovative products has earned us a strong reputation in the industry, and we have built a loyal customer base, especially across industrial applications,” said Matt Johnson, president and CEO of Silicon Labs, in an investor call.
“Not only are we proud of the growth we have achieved over more than a decade, we’ve also worked hard to build a high-quality revenue base across thousands of customers,” he added.
“There are significant growth opportunities available, and these will be further enhanced with TI’s dependable and low-cost manufacturing capabilities and extensive reach of channels.”
This acquisition is Texas Instruments’ first major acquisition since 2011, when it acquired National Semiconductor for $6.5 billion.
The company anticipates funding the Silicon Labs deal with cash on hand, and debt financing yet to be arranged.
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