Microchip Technology has acquired Israeli chip startup Hailo for an undisclosed amount.

The deal is expected to be finalized by September 30, subject to customary closing conditions and regulatory approvals.

Microchip said the acquisition will help expand its processing portfolio for intelligent Edge systems and “strengthen its ability to deliver accelerated, power-efficient edge AI solutions” for robotics, advanced vision processing and intelligent Edge applications.

Founded by Orr Danon and Avi Baum in 2017, Hailo designs chips to run AI workloads on Edge devices, targeting sectors such as personal compute, automotive, security, and retail.

In June 2025, the startup released its second-generation AI chip, Hailo-10H, which offers on-device capabilities, including support for large-language models (LLMs) and vision-language models (VLMs), allowing customers to run generative AI applications locally without using cloud-based generative AI services.

“The acquisition of Hailo accelerates Microchip’s expansion into high-performance Edge AI processing,” said Mark Reiten, senior corporate vice president, Microchip Technology. “Hailo’s AI acceleration, advanced vision processing and software ecosystem directly complements Microchip’s embedded processing, FPGA, connectivity, security, power, and analog portfolio. Together, we can help customers build more capable intelligent Edge systems with the right balance of performance, power efficiency, reliability and system cost.”

Danon, CEO of Hailo, added: “Joining Microchip would give Hailo the opportunity to scale our accelerated Edge AI technology through a global embedded systems leader. Microchip’s customer reach, channel scale and broad technology portfolio would create a strong platform for bringing advanced vision processing and AI acceleration to a broader range of intelligent Edge applications.”