Simulation giant Texas Instruments (TI) has officially announced the acquisition of Silicon Labs. According to the final agreement signed by both parties, Texas Instruments will acquire Silicon Labs in full cash at a price of $231.00 per share, with a total enterprise value of approximately $7.5 billion.

Insiders revealed that the transaction is still in the negotiation stage, but it is expected to be officially announced in the coming days. If the transaction goes smoothly, it can make up for the shortcomings of Texas Instruments in the field of wireless connectivity. This is the largest merger since the acquisition of National Semiconductor for $6.5 billion in 2011.

The acquisition of Texas Instruments is not a simple scale expansion. After divesting its infrastructure and automotive related businesses in 2021, Xinke Technology has fully shifted towards the field of IoT wireless device chips, focusing on low-power wireless communication solutions. Currently, over 95% of Texas Instruments' revenue comes from its semiconductor business.

Haviv Ilian, Chairman, President, and CEO of Texas Instruments, stated that the acquisition of Silicon Labs is a significant milestone in our long-term embedded processing strategy. Silicon Labs' leading portfolio of embedded wireless connectivity products will further strengthen our technology and intellectual property, enhance economies of scale, and enable us to serve customers more effectively. Texas Instruments' industry-leading and independently owned technology and manufacturing capabilities are highly suitable for Silicon Labs' product portfolio, providing reliable and stable supply guarantees for global customers. Hand in hand, achieve more "- Both Texas Instruments and Silicon Labs teams have a high-performance culture that values excellence, engineering, and innovation. I firmly believe that this transaction will drive the merged company to continue creating value for Texas Instruments shareholders. ” 

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