Texas Instruments Acquires Austin Chip Maker in $7.5 Billion Agreement
Texas Instruments has announced a significant move in the semiconductor industry by acquiring Austin-based Silicon Labs for $7.5 billion. This acquisition aims to enhance Texas Instruments’ chip enterprise and is particularly focused on strengthening its wireless connectivity portfolio.
Details of the Acquisition
The transaction is an all-cash deal, offering Silicon Labs shareholders $231 per share. The announcement was made on Wednesday, and the deal is expected to be finalized by 2027, subject to necessary regulatory and shareholder approvals.
Silicon Labs Overview
- Headquartered in Austin, Texas.
- Specializes in designing semiconductors while outsourcing manufacturing.
- Focused on wireless connectivity technologies.
In 2025, Silicon Labs reported revenues of $785 million. In comparison, Texas Instruments generated revenues of $15.6 billion in 2024. This acquisition will enable Texas Instruments to transition Silicon Labs’ chip manufacturing from external foundries to its facilities.
Strategic Benefits
Haviv Ilan, chair and CEO of Texas Instruments, expressed that the acquisition would allow for greater scale and improved customer service. The integration of Silicon Labs’ portfolio will leverage Texas Instruments’ established manufacturing capabilities.
- 70% of Silicon Labs’ employees are dedicated to engineering.
- The company holds over 1,500 patents related to wireless connectivity.
- Approximately 85% of its customer base comes from industrial markets.
Matt Johnson, CEO of Silicon Labs, noted the company’s strong reputation for innovative engineering and the opportunity for growth with Texas Instruments’ manufacturing prowess. Johnson emphasized the loyalty of their customer base across various industrial applications.
Historical Context
This acquisition marks Texas Instruments’ first major purchase since 2011, when it acquired National Semiconductor for $6.5 billion. The company plans to finance the Silicon Labs acquisition primarily with cash reserves, along with potential future debt financing.
In summary, Texas Instruments is positioning itself for future growth in the semiconductor market through this acquisition, tapping into Silicon Labs’ robust engineering resources and customer networks.
