Texas Instruments (Nasdaq: TXN) announced on February 4, 2026, that it has entered into a definitive agreement to acquire Silicon Labs (Nasdaq: SLAB) in an all-cash transaction valued at approximately $7.5 billion. Under the terms of the deal, Silicon Labs shareholders will receive $231.00 per share, positioning the acquisition as a major consolidation move in the fast-growing embedded wireless connectivity market.
The transaction brings together Texas Instruments’ strength in analog and embedded processing with Silicon Labs’ leadership in secure, intelligent wireless technology. The combined company is expected to emerge as a global leader in embedded wireless connectivity solutions, a segment benefiting from long-term secular trends such as the Internet of Things (IoT), industrial automation, smart infrastructure, and connected consumer devices.
Strategically, the acquisition expands Texas Instruments’ embedded portfolio with approximately 1,200 Silicon Labs products supporting a wide range of wireless standards and protocols. Silicon Labs’ mixed-signal and wireless expertise complements Texas Instruments’ existing analog and embedded processing capabilities, allowing the combined company to deliver more comprehensive and integrated solutions to customers across industrial, automotive, and consumer end markets.
A central pillar of the deal is manufacturing integration. Texas Instruments plans to leverage its industry-leading, internally owned manufacturing footprint to reshore Silicon Labs’ production, which currently relies heavily on external foundries. Texas Instruments operates 300mm wafer fabrication facilities in the United States, along with internal assembly and test operations, providing dependable, low-cost capacity at scale. Management expects this integration to improve supply reliability for customers while reducing costs and shortening development cycles, particularly as Texas Instruments’ 28nm and other defined process technologies are well suited to Silicon Labs’ wireless product portfolio.
The financial rationale is equally compelling. Texas Instruments expects the transaction to generate approximately $450 million in annual manufacturing and operational synergies within three years of closing. These efficiencies are expected to come from manufacturing optimization, operational scale, and streamlined processes across design, production, and distribution. The company also expects the acquisition to be accretive to earnings per share in the first full year after closing, excluding transaction-related costs.
Beyond cost synergies, Texas Instruments sees significant growth opportunities through expanded customer reach and cross-selling. Its global sales force, direct customer relationships, and robust e-commerce platform are expected to deepen engagement with Silicon Labs’ existing customers while introducing its wireless solutions to new markets. Silicon Labs has delivered roughly 15% compound annual revenue growth since 2014, driven by increasing demand for connected devices, and Texas Instruments aims to build on this momentum with greater scale and market access.
The acquisition has been unanimously approved by the boards of both companies. Texas Instruments plans to fund the transaction using a combination of cash on hand and debt financing, with no financing contingency. The deal is expected to close in the first half of 2027, subject to regulatory approvals and approval by Silicon Labs shareholders.
Following the acquisition, Texas Instruments reiterated its commitment to returning 100% of free cash flow to shareholders over time through dividends and share repurchases, signaling confidence that the transaction will enhance long-term shareholder value while strengthening its position in embedded wireless connectivity.