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Texas Instruments to Acquire Silicon Labs in $7.5 Billion All-Cash Deal

TI seeks to pair Silicon Labs' wireless IP with its U.S. fabs to bolster industrial and IoT offerings.

Overview

  • Silicon Labs shareholders will receive $231 per share, with closing targeted for the first half of 2027 pending regulatory and stockholder approvals.
  • TI will finance the purchase with cash on hand and new debt, and the agreement sets a $259 million breakup fee for Silicon Labs and $499 million if TI terminates.
  • The companies project about $450 million in annual manufacturing and operational savings within three years after closing by shifting production into TI fabs, including the new Sherman facility.
  • Shares of Silicon Labs jumped roughly 49% on the news as Texas Instruments slipped modestly.
  • The acquisition adds around 1,200 products and a leading low‑power wireless portfolio across Bluetooth, Wi‑Fi and Zigbee, deepening TI’s reach with industrial customers.