Semiconductor firm Texas Instruments has announced it will acquire fabless semiconductor company Silicon Labs in a $7.5 billion all-cash transaction.

According to a statement from Texas Instruments, the deal is expected to generate around $450 million of annual manufacturing and operational revenue within three years of the deal closing, and will see Texas Instruments add approximately 1,200 products to its existing portfolio.

The transaction will also allow the combined company to deliver fully integrated process, design, and manufacturing capabilities by reshoring Silicon Labs' manufacturing from external foundries, the statement continued, adding that existing and new customers will be better served through “enhanced innovation and market access.”

"The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy,” said Haviv Ilan, chairman, president, and CEO of Texas Instruments. "Together, we can do more. The Texas Instruments and Silicon Labs teams share a high-performing culture focused on excellence, engineering, and innovation, and I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments' shareholders."

Matt Johnson, president and CEO of Silicon Labs, added: "Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way … The opportunity ahead is significant for both Texas Instruments and Silicon Labs. By combining our embedded wireless connectivity portfolio with Texas Instruments' scale, technology, and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation."

Founded in 1996 and headquartered in Austin, Texas, Silicon Labs designs and manufactures chips – primarily microcontrollers and wireless system-on-chips (SoCs) and modules – for wireless technologies across a number of industries. In February 2025, the company was awarded a grant of $23 million under the Texas Semiconductor Innovation Fund (TSIF) to support the construction of a new $80m R&D facility in Austin, Texas.

Texas Instruments also has its own 300mm wafer fabs in Sherman and Richardson, Texas, and Lehi, Utah. In January 2025, the company finalized its CHIPS Act agreement with the Biden administration, under which it received $1.61 billion to support its proposed $18 billion investment projects across the two states.

The transaction is expected to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions.