What does a $7.5 billion deal mean for US chipmaking as Texas Instruments moves to buy Silicon Labs and pull wireless chip manufacturing back home?
Texas Instruments has agreed to acquire Silicon Labs in an all-cash deal valued at about $7.5 billion. The acquisition is aimed at strengthening Texas Instruments’ position in embedded processing and wireless connectivity, while bringing more chip manufacturing back to the United States (US).
The companies expect the deal to close in the first half of 2027, subject to regulatory approvals.
According to Texas Instruments, the transaction will enable Silicon Labs to shift production away from Asia-based foundries and use Texas Instruments’ US manufacturing facilities. This shift is expected to provide lower-cost capacity, along with in-house assembly and testing.
Texas Instruments said the deal should be earnings-accretive in the first full year after closing and could deliver approximately $450 million in manufacturing and operational synergies within three years.
Silicon Labs, founded in 1996 and headquartered in Austin, Texas, designs integrated circuits used in smart and connected products. These include consumer electronics, Bluetooth-enabled devices and industrial systems such as heating and ventilation equipment.
While the company designs its chips internally, it currently relies on external foundries and subcontractors, primarily in Asia, for wafer fabrication, assembly and packaging.
Texas Instruments’ chairman and chief executive, Haviv Ilan, said Silicon Labs brings a mature portfolio of chips, software and firmware that would have taken many years to build internally.
He described the acquisition as a key step in accelerating the company’s embedded processing strategy, which has gradually shifted towards mixed-signal solutions since 2019.
Texas Instruments has already been expanding its domestic manufacturing base. In recent years, it acquired and upgraded a former Micron facility in Utah and began constructing a second fabrication plant at the same site. The addition of Silicon Labs is expected to complement these investments.
Silicon Labs employs nearly 1900 people worldwide, most of whom are engineers. Texas Instruments said this engineering depth would further strengthen its long-term technology leadership, particularly in wireless connectivity markets.
