Texas Instruments to buy chip designer Silicon Laboratories in $7.5 billion deal

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Feb 4 : Texas Instruments on Wednesday agreed to buy chip designer Silicon Laboratories in a deal valued at $7.5 billion, expanding its footprint in wireless connectivity chips used for industrial and consumer applications.

Texas, whose core strength lies in analog chips that manage signals and power in electronic equipments, will deepen its push into internet-of-things markets by adding Silicon Labs' wireless technology.

As part of the deal, Texas will acquire Silicon Labs for $231 per share, implying a premium of about 69 per cent to Silicon Labs' last unaffected closing price on Tuesday, when the talks were first reported.

Unlike AI chip firms Nvidia and AMD, TI focuses on foundational chips used in everyday devices such as smartphones, cars and medical devices, giving it a large client base that includes Apple, SpaceX and Ford Motor.

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