Texas Instruments to buy Austin's Silicon Labs for $7.5 billion
The all-cash deal is TI's largest acquisition since 2011 and would fold an Austin wireless-chip pioneer into the Dallas semiconductor giant.
AUSTIN — Texas Instruments has agreed to acquire Austin-based Silicon Labs in an all-cash deal valued at roughly $7.5 billion, the companies said in February, in one of the largest tech transactions in the region's history.
Under the agreement, Silicon Labs shareholders would receive $231 per share. Silicon Labs is a fabless designer of wireless-connectivity chips, while Dallas-based Texas Instruments is an integrated device manufacturer focused on analog and embedded processing — a combination the buyer frames as complementary.
The transaction is expected to close in 2027, pending regulatory and shareholder approval. It would be Texas Instruments' first major acquisition since its $6.5 billion purchase of National Semiconductor in 2011.
Why it matters
A $7.5 billion exit for a homegrown Austin chip company is a milestone for the city's 'Silicon Hills' identity — validating decades of local semiconductor talent while raising familiar questions about whether acquired innovation stays in town. For TI, the deal is a bet that connectivity and embedded processing increasingly belong under one roof.
The long path to a 2027 close leaves room for antitrust scrutiny and integration risk, but the headline price resets expectations for what Austin chip startups can command.
Reported by Next in Austin. Based on reporting from Texas Instruments.
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