U.S. Semiconductor Company Expands Wireless IoT with $7.5 Billion Acquisition

Texas Instruments Inc. (TXN) has signed a definitive agreement to acquire Silicon Labs at $231 per share, in a transaction valued at approximately $7.5 billion. The deal will be financed with cash and investment-grade corporate debt, and is expected to close in the first half of 2027. TI plans to transfer Silicon Labs’ industrial and embedded wireless-connectivity products onto its own low-cost, in-house production lines, targeting annual synergies of $450 million within three years. The company also anticipates the acquisition will be accretive to earnings per share in the first year following closing.

On January 29, Executive Vice President Gary Mark received common stock and stock options under TI’s long-term incentive plan. On February 17, Executive Vice President Hagop Kozanian disclosed the sale of roughly $1.55 million worth of common shares in the open market—while still retaining tens of thousands of shares.

TI has scheduled a webcast for February 24 (U.S. time) to outline its capital-management and free-cash-flow strategy, where it will also provide further details on its dividend and share-repurchase policies and its future investment plans. In January, the company broadened its automotive and industrial/smart-home connectivity semiconductor portfolio through a collaboration with satellite-based connectivity start-up Hubble Network and by unveiling new automotive semiconductors as well as Wi-Fi and Bluetooth chips for IoT applications.

Headquartered in the U.S., Texas Instruments designs and manufactures analog and embedded processing chips, and has long secured a stable demand base in automotive, industrial equipment, and communications infrastructure markets. Across the semiconductor industry, rising demand for power-management, sensing, and wireless-connectivity chips—driven by the growth of AI data centers, electric vehicles, industrial automation, and the Internet of Things—is fueling a wave of major acquisitions and capacity expansions.