{"id":150607,"date":"2026-02-04T14:10:08","date_gmt":"2026-02-04T14:10:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/150607\/"},"modified":"2026-02-04T14:10:08","modified_gmt":"2026-02-04T14:10:08","slug":"dallas-based-texas-instruments-buys-austin-chip-maker-in-7-5-billion-deal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/150607\/","title":{"rendered":"Dallas-based Texas Instruments buys Austin chip maker in $7.5 billion deal"},"content":{"rendered":"

Texas Instruments is spending $7.5 billion to buy Austin-based tech firm Silicon Labs to extend its chips enterprise.<\/p>\n

The pair reached a definitive acquisition agreement announced Wednesday, an all-cash transaction that would grant Silicon Labs shareholders $231 per share. The deal is expected to close in 2027 pending regulatory and shareholder approval.<\/p>\n

Silicon Labs is a fabless chip maker, meaning it designs but outsources the manufacturing of semiconductors, with a focus on wireless connectivity.<\/p>\n

This is a complement to Dallas-based Texas Instruments, an integrated device manufacturer that makes embedded processing chips and analog chips (chips that process continuous information like temperature or sound rather than binary data).<\/p>\n

Business Briefing<\/p>\n

Become a business insider with the latest news.<\/p>\n

By signing up, you agree to our\u00a0Terms of Service<\/a>\u00a0and\u00a0Privacy Policy.<\/a><\/p>\n

\u201cSilicon Labs\u2019 leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers,\u201d said Haviv Ilan, chairman, president and chief executive officer of Texas Instruments, in a release.<\/p>\n

\u201cTexas Instruments\u2019 industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs\u2019 portfolio, and will provide customers dependable supply worldwide,\u201d the statement continued.<\/p>\n

Silicon Labs recorded $785 million in revenue in 2025, while Texas Instruments had revenues of $15.6 billion in 2024.<\/p>\n

The deal will transfer manufacturing of Silicon Labs\u2019 chips from external foundries to Texas Instruments, which unveiled a $30 billion semiconductor factory in Sherman<\/a> in December, according to the release.<\/p>\n

An investor presentation highlighted Silicon Labs\u2019 engineering capacity \u2014 70% of its employee base is dedicated to engineering \u2014 and its more than 1,500 patents related to wireless connectivity. Additionally, around 85% of Silicon Labs\u2019 customers come from the industrial market, per the presentation. <\/p>\n

\u201cOur focus on engineering innovative products has earned us a strong reputation in the industry, and we have built a loyal customer base, especially across industrial applications. Not only are we proud of the growth we have achieved over more than a decade, we\u2019ve also worked hard to build a high-quality revenue base across thousands of customers,\u201d said Matt Johnson, president and CEO of Silicon Labs, in an investor call. \u201cThere are significant growth opportunities available, and these will be further enhanced with TI\u2019s dependable and low-cost manufacturing capabilities and extensive reach of channels.\u201d<\/p>\n

This acquisition is Texas Instruments\u2019 first major acquisition since 2011, when it acquired National Semiconductor for $6.5 billion.<\/p>\n

Texas Instruments anticipates funding the deal with cash on hand and debt financing yet to be arranged. <\/p>\n

\"A<\/a>Spain, Greece propose social media bans for teens<\/a><\/p>\n

Governments and regulators worldwide are weighing the impact of children\u2019s screen time on development and mental wellbeing.<\/p>\n

\"A<\/a>AT&T completes $6 billion deal to bulk up fiber customer base<\/a><\/p>\n

The Lumen deal adds more than a million fiber customers to AT&T\u2019s base.<\/p>\n","protected":false},"excerpt":{"rendered":"Texas Instruments is spending $7.5 billion to buy Austin-based tech firm Silicon Labs to extend its chips enterprise.…\n","protected":false},"author":2,"featured_media":150608,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[132,134,133,19582,1196,3621,13263],"class_list":{"0":"post-150607","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-austin","8":"tag-austin","9":"tag-austin-headlines","10":"tag-austin-news","11":"tag-local-companies","12":"tag-mergers-and-acquisitions","13":"tag-technology","14":"tag-texas-instruments"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/150607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=150607"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/150607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/150608"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=150607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=150607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=150607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}