Signage on the Texas Devices (TI) semiconductor wafer plant in Sherman, Texas, US, on Wednesday, Dec. 17, 2025.
Desiree Rios | Bloomberg | Getty Pictures
Texas Devices on Wednesday agreed to purchase Silicon Laboratories in a deal valuing the chip designer at $7.5 billion, increasing Texas Devices’ footprint in wi-fi connectivity chips used for industrial and shopper purposes.
For Texas Devices, whose core power lies in analog chips that handle indicators and energy in digital tools, the acquisition marks its greatest for the reason that $6.5 billion deal for Nationwide Semiconductor in 2011.
In contrast to AI chip companies Nvidia and AMD, Texas Devices focuses on foundational chips utilized in on a regular basis units corresponding to smartphones, automobiles and medical units, giving it a big shopper base that features Apple, SpaceX and Ford Motor.
Texas will purchase Silicon Labs for $231 per share, implying a premium of about 69% to the inventory’s final unaffected closing worth on Tuesday, when the deal talks have been first reported. Silicon shares jumped 24% in premarket buying and selling, whereas Texas was down 3.5%.
Silicon had bought some automotive chip belongings and different strains of enterprise to Skyworks Options for $2.75 billion in 2021.
The divestment was aimed at sharpening its deal with chips for related units corresponding to good residence merchandise, good energy meters and related industrial tools that gather information to enhance effectivity.
Below the phrases of the newest settlement, Silicon would pay a $259 million termination price if it walks away from the deal, whereas Texas would pay $499 million if it abandons the transaction.
