ON Semiconductor has agreed to acquire Synaptics in an all-stock deal valued at nearly $7 billion, as the chipmaker seeks to expand its capabilities in physical artificial intelligence and intelligent systems.
The acquisition, ON Semiconductor’s largest to date, will add connected computing technology, software capabilities and ecosystem reach as demand grows for AI-enabled devices and industrial applications.
The Arizona-based chipmaker said the transaction would expand its total addressable market by $30 billion to $243 billion by 2030 and strengthen its intelligent sensing and computing portfolio.
“This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position onsemi to deliver greater value as customers increasingly seek intelligent systems,” ON Semiconductor CEO Hassane El-Khoury said.
Shares of ON Semiconductor fell about 6% in after-hours trading following the announcement, while Synaptics shares gained about 13%.
The deal comes as semiconductor and technology companies accelerate acquisitions to strengthen their artificial intelligence capabilities and compete in emerging AI markets.
Qualcomm this week agreed to acquire AI infrastructure startup Modular to expand its software capabilities, while Salesforce said earlier this month it would buy AI customer service platform Fin for about $3.6 billion.
Under the agreement, expected to close in mid-2027, Synaptics shareholders will receive 1.350 shares of ON Semiconductor common stock for each Synaptics share held.
ON Semiconductor will also add a Synaptics board member following completion of the transaction.
ON Semiconductor is a major supplier of silicon carbide chips and power and sensing solutions used in automotive, electric vehicle and industrial markets.
The company has increasingly focused on technologies that combine semiconductor hardware with AI capabilities to support autonomous machines, robotics and other applications where systems interact with the physical world.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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