Texas Instruments Buys Silicon Labs To Fuel Edge AI Scale

Analyst(s): Brendan Burke
Publication date: February 10, 2026

Texas Instruments (TI) has agreed to acquire Silicon Labs for $7.5 billion in cash, combining TI’s scale of analog and embedded processing with Silicon Labs’ wireless connectivity portfolio. The deal highlights a strategic bet on manufacturing capabilities and integrated markets.

What is covered in this article:

• Transaction: Texas Instruments (TI) will acquire Silicon Labs for $231 per share ($7.5 billion enterprise value) in an all-cash transaction.
• Vertical integration: The move marks a move toward vertical integration in the silicon supply chain, reflecting trends such as GlobalFoundries’ acquisition of Synopsys’ ARC intellectual property and the positioning of manufacturing plants as the new center of gravity for design innovation.
• Edge AI Acceleration: Silicon Labs’ Series 3 platform has access to TI’s 28nm expanded nodes to drive the economics needed for mass adoption of edge AI.
• Market alignment: As data center energy management makes data centers TI’s fastest growing market, this deal strengthens its core revenue streams in the industrial and automotive sectors, capitalizing on the anticipated upward trend in cash generation from the fragmented analog market.

News: Texas Instruments (TI) has agreed to acquire Silicon Labs for $231.00 per share in cash, implying a total enterprise value of approximately $7.5 billion. The transaction was unanimously approved by both boards of directors. The deal combines approximately 1,200 Silicon Labs wireless connectivity products with TI’s enormous scale of analog and integrated processing and an in-house manufacturing footprint. Silicon Labs notably offers its next-generation Series 3 platform, which boasts a 10x increase in coremark and 100 AI GOPS (Giga Operations Per Second), positioning the combined entity to manage complex edge AI devices. TI expects to generate approximately $450 million in annual manufacturing and operating synergies within three years of closing by relocating production from Silicon Labs to its own factories. The acquisition is expected to be accretive to earnings per share within the first full year following closing.

Texas Instruments Buys Silicon Labs to Power Edge AI Scale

Analyst Opinion — Manufacturing plants are the center of gravity of the silicon supply chain: TI’s acquisition of Silicon Labs reinforces a crucial structural shift in the semiconductor industry: the manufacturing plant becomes the center of gravity for value creation. The move extends the trend seen with GlobalFoundries’ acquisition of Synopsys’ ARC processor intellectual property, demonstrating that the separation between fabless design and foundry manufacturing is blurring for edge applications. By vertically integrating Silicon Labs’ wireless IP with its own manufacturing capabilities, TI can optimize the feedback loop between process technology and chip design. This creates structural cost advantages and performance optimization capabilities that are difficult for fabless competitors to replicate, especially as the industry seeks the efficiencies needed to scale AI at the edge.

Scaling Edge ML with vertical efficiencies

The integration is timely given the technical trajectory of Silicon Labs’ portfolio. With the Series 3 platform delivering 100 AI GOPS and a 10x increase in coremark from 300 to 3,000 in Series 2, Silicon Labs has moved beyond simple connectivity to robust edge computing. Launched in 2026, Series 3 allows Silicon Labs to enter the market for complex embedded systems, including wireless gateways, cameras and wearable devices. The company plans to integrate 10 billion devices per year by 2035. TI’s ability to manufacture these complex SoCs on its cost-effective 300mm wafers enables the mass deployment of intelligent connectivity ahead of the launch of Silicon Labs’ SiXG302 SoCs. This combination combines TI’s dominance in energy management with Silicon Labs’ compute and radio capabilities, creating a complete solution for the intelligent edge.

Consolidation in fragmented analog and integrated markets

The analog and integrated processing industries remain highly fragmented, making them ripe for consolidation. Texas Instruments’ core analog products business resides in an industry poised for an upward trend in cash generation, given the capacity added over the past two years. With the tailwinds of this cyclical shift and its exposure to AI, TI is using its balance sheet to lock scalable intellectual property into its integrated portfolio. Even though TI’s power management chips currently make data centers the fastest growing market, the bulk of its revenue remains concentrated in the industrial and automotive sectors. Silicon Labs’ portfolio is perfectly aligned with these key revenue streams, ensuring that as TI pursues large-scale growth in the cloud, it simultaneously strengthens its leadership in industrial sensing, smart home, connected healthcare and other integrated markets.

Regulatory and geographic exposure considerations

Regulatory approval remains a determining factor, especially given both companies’ exposure to China, where Silicon Labs makes about 15% of their sales and TI about 20%. Although antitrust concerns in the United States are limited due to the fragmented nature of the IoT semiconductor market, approval from the Chinese State Administration for market regulation may be required. The planned closing schedule for the first half of 2027 reflects these regulatory complexities and the scale of integration involved. Termination fees of $259 million for Silicon Labs and $499 million for TI further underline the conditional nature of the transaction. Regulatory outcomes will play an important role in determining whether the strategic and financial objectives of the transaction will ultimately be achieved.

What to watch:

• Manufacturing migration speed: How quickly TI can qualify and migrate Silicon Labs’ products to its internal 28nm process will determine how quickly the $450 million in synergies are realized.
• Series 3 Roadmap Integration: Watch for announcements regarding the integration of Silicon Labs’ AI-enabled Series 3 architecture with TI’s proprietary embedded processing IP.
• Consolidation of competitors: Expect further M&A activity in the fragmented analog and mixed signal space as competitors respond to TI’s increased scale and vertical capabilities.

See the full press release on Texas Instruments’ acquisition of Silicon Labs to enhance in-vehicle wireless connectivity Texas Instruments website.

Disclosure: Futurum is a research and consulting company that engages or has engaged in research, analysis and advisory services to many technology companies, including those mentioned in this article. The author has no ownership interest in any company mentioned in this article.

The analysis and opinions expressed herein are specific to the individual analyst and the data and other information that may have been provided for validation, and not to those of Futurum as a whole.

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