Onsemi to acquire Synaptics for $7 billion to expand into physical AI
Onsemi, an intelligent power and sensing semiconductor company, has agreed to acquire Synaptics in a $7 billion deal to strengthen its presence in the physical artificial intelligence (AI) and edge AI domains.
The transaction value represents an approximately 19% premium to the volume-weighted average closing prices of Onsemi and Synaptics over the last 10 trading days, according to a joint statement released on Thursday.
The transaction is expected to close in mid-2027, subject to approval by Synaptics stockholders, required regulatory approvals, and other customary conditions.
As part of the transaction, one member of the Synaptics board is expected to join Onsemi’s board.
“By adding Synaptics’ differentiated Edge AI compute franchise and strong portfolio of human-machine interface and wireless connectivity solutions, Onsemi is expected to extend its capabilities beyond power and sensing to intelligent systems,” Onsemi said.
The company estimates that the combined platform can potentially expand Onsemi’s total addressable market (TAM) by $30 billion to $243 billion by 2030.
“This shift towards physical AI will require power, sense, connected compute, and control to work together seamlessly,” said Hassane El-Khoury, president & CEO of Onsemi.
“The addition of Synaptics helps position Onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data center and into edge applications,” he added.
“Today’s announcement marks an important step in accelerating Synaptics’ growth and leadership in edge AI and physical AI,” said Rahul Patel, president & CEO, Synaptics.
Patel added that Synaptics will combine strengths in AI-native compute, connectivity, and human-machine interface with Onsemi’s leadership in intelligent power and sensing to “offer customers integrated solutions and development platforms across every layer of the edge AI stack”.
