Texas Instruments (TXN) Targets Wireless Growth with Silicon Laboratories Acquisition

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

On February 4, Texas Instruments Incorporated (NASDAQ:TXN) announced that it has agreed to acquire Silicon Laboratories in a $7.5 billion deal. This marks its largest acquisition since it bought National Semiconductor in 2011. The goal is to expand its presence in wireless connectivity chips, which are widely used in industrial equipment and consumer devices.

Texas Instruments has long focused on analog chips that support everyday electronics. These chips are used in smartphones, vehicles, medical equipment, and many other systems. With the addition of Silicon Labs, the company is strengthening its position in connected technologies, including smart home devices and industrial applications. Under the terms of the agreement, Texas Instruments will pay $231 per share. That represents about a 69% premium to Silicon Labs’ previous closing price. Silicon Labs’ shares moved sharply higher after the announcement, reflecting investor reaction to the premium. Texas Instruments’ stock declined following the news. The deal is expected to close in the first half of 2027 and will be financed through a mix of cash and debt.

Texas Instruments said it expects the acquisition to generate about $450 million in annual cost savings within three years. These savings are expected to come mainly from manufacturing efficiencies and streamlined operations.

Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, tests, and sells analog and embedded processing chips. Its products are used across industrial systems, vehicles, consumer electronics, communications equipment, and enterprise technology.

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