Texas Instruments announced it will acquire Silicon Laboratories for $7.5 billion in cash, offering Silicon Labs shareholders $231 per share. The transaction, expected to close in the first half of 2027 pending regulatory approvals, will be funded through a combination of the company’s $3.2 billion cash balance and arranged debt. Management projects approximately $450 million in annual manufacturing and operational synergies within three years of closing, driven by integration of Silicon Labs’ 1,200 embedded wireless connectivity products with Texas Instruments’ analog and embedded processing portfolio. Excluding transaction-related costs, the deal is expected to be accretive to earnings per share in the first full year post-close.

In its fourth quarter, Texas Instruments reported adjusted gross margin above expectations and provided a modestly above-seasonal revenue guide, reinforcing a cautious recovery story. The newly formalized data center segment grew approximately 70% year-over-year to a quarterly run rate of $450 million. Industrial and automotive end markets continued to be key drivers, though contributions remain incremental. Management signaled that capital expenditures for 2026 could decline to a range of $2–3 billion, reflecting a shift toward free cash flow generation once the recovery gains traction.