Texas Instruments in Advanced Talks to Acquire Silicon Laboratories in Deal Valued Around $7 Billion

Texas Instruments (NASDAQ: TXN) is reportedly in advanced discussions to acquire Silicon Laboratories (NASDAQ: SLAB) in a transaction that could value the semiconductor designer at roughly $7 billion, according to a person familiar with the matter. While no agreement has been finalized, the source said an announcement could come as soon as the coming days, though negotiations remain subject to change and could still fall apart.

News of the potential transaction sent Silicon Laboratories shares sharply higher in extended trading, reflecting investor optimism around a possible takeover premium. Shares of Texas Instruments traded lower following the report. Neither company has publicly commented on the talks.

If completed, the acquisition would mark a significant expansion of Texas Instruments’ presence in chips designed for connected and embedded devices, complementing its existing portfolio of analog and foundational semiconductors used across industrial, automotive, and consumer markets.Silicon Laboratories has spent the past several years reshaping its business, including divesting non-core automotive and infrastructure assets in order to concentrate on wireless connectivity solutions for applications such as smart homes, industrial automation, and energy management systems.

People familiar with the discussions said the transaction is expected to be financed using a combination of cash and debt, and could generate substantial cost synergies through manufacturing efficiencies and streamlined operations in the years following completion. The deal is also expected to include customary breakup fees for both parties. The talks come as demand for semiconductor components continues to rise alongside increased investment in data infrastructure, automation, and intelligent devices, even as broader market volatility has pressured technology valuations.

Goldman Sachs is serving as financial advisor to Texas Instruments on the potential transaction. If finalized, the deal is expected to close in the first half of 2027, subject to regulatory approvals and shareholder consent.

About Texas Instruments

Texas Instruments (NASDAQ: TXN) is a global semiconductor company that designs and manufactures analog and embedded processing chips used in industrial equipment, automobiles, communications systems, and consumer electronics. The company serves customers worldwide and is known for its long product lifecycles and diversified end markets.

About Silicon Laboratories

Silicon Laboratories (NASDAQ: SLAB) is a fabless semiconductor company specializing in wireless connectivity and embedded solutions for connected devices. Its products are used in applications including smart home systems, industrial automation, and energy infrastructure.