onsemi and Synaptics Incorporated have entered into a definitive agreement under which onsemi will acquire Synaptics in an all-stock transaction valued at approximately $7 billion. The acquisition is intended to significantly expand onsemi’s capabilities beyond power semiconductors and sensing into intelligent, system-level solutions spanning edge artificial intelligence (AI), wireless connectivity, and human-machine interface technologies.
Under the terms of the agreement, Synaptics shareholders will receive 1.350 shares of onsemi common stock for each Synaptics share, representing an approximately 19% premium based on the companies’ 10-day volume-weighted average share prices prior to the announcement. Following completion of the transaction, Synaptics shareholders are expected to own approximately 12% of the combined company on a fully diluted basis.
The acquisition marks a significant strategic step in onsemi’s evolution toward becoming a provider of complete intelligent systems. By combining Synaptics’ Edge AI computing platform, wireless connectivity technologies, and human-machine interface (HMI) portfolio with onsemi’s established strengths in power management, sensing, automotive electronics, industrial automation, and AI data center infrastructure, the combined company aims to address the rapidly growing Physical AI market.
According to onsemi, the acquisition has the potential to expand its total addressable market (TAM) by approximately $30 billion, increasing it to an estimated $243 billion by 2030. The company expects the combined technology portfolio to enable integrated solutions that can sense, process, communicate, and control real-world systems across a wide range of applications.
onsemi President and CEO Hassane El-Khoury emphasized that artificial intelligence is increasingly moving beyond cloud computing into physical systems such as automobiles, industrial equipment, robotics, and intelligent infrastructure. He noted that next-generation Physical AI applications require the seamless integration of four fundamental technology pillars:
- Power
- Sensing
- Connected computing
- Control
The acquisition of Synaptics is expected to provide onsemi with immediate edge computing capabilities while expanding its software ecosystem and enabling the delivery of more comprehensive intelligent systems solutions.
Synaptics contributes several strategic technology assets to the combined company, including its Astra Edge AI platform, which integrates:
- AI-optimized processors
- Neural processing units (NPUs)
- Multimodal AI capabilities
- Wi-Fi connectivity
- Bluetooth connectivity
- GPS technologies
- Open-source software development environment
These technologies are designed to support intelligent edge devices requiring local AI processing with low latency and reduced cloud dependence.
Synaptics President and CEO Rahul Patel described the transaction as an opportunity to combine Synaptics’ strengths in Edge AI, connectivity, and human-machine interfaces with onsemi’s leadership in intelligent power and sensing to create integrated hardware and software platforms across the entire Edge AI stack.
The companies expect the combination to deliver several strategic advantages:
- Extend onsemi’s presence from AI infrastructure into intelligent edge systems
- Expand capabilities in automotive, industrial, robotics, augmented reality (AR), and virtual reality (VR)
- Accelerate development of integrated system-level solutions
- Increase semiconductor content per customer platform
- Deepen long-term customer relationships through combined hardware, software, and connectivity offerings
- Strengthen participation in higher-value markets with greater software and intellectual property content
The transaction is expected to generate attractive financial benefits, including:
- Accretion to non-GAAP earnings per share within approximately 18 months after closing
- Approximately $200 million in expected annual cost synergies
- Gross margins consistent with onsemi’s long-term financial objectives
- Continued commitment to onsemi’s existing capital return policy during the transaction process
The acquisition has been unanimously approved by the boards of directors of both companies. In addition, one member of the Synaptics Board of Directors is expected to join onsemi’s Board following completion of the transaction.
The transaction is anticipated to close in mid-2027, subject to:
- Approval by Synaptics shareholders
- Required regulatory approvals
- Satisfaction of customary closing conditions
Both companies reaffirmed their previously issued financial guidance. onsemi reiterated its second-quarter 2026 outlook, while Synaptics reaffirmed its fiscal fourth-quarter 2026 guidance.
If completed, the acquisition would represent one of the largest strategic transactions in the semiconductor industry focused on Edge AI and Physical AI. By combining power semiconductors, sensing technologies, embedded AI processing, wireless connectivity, and software platforms, the merged company aims to establish a comprehensive portfolio capable of supporting next-generation intelligent systems across automotive, industrial automation, robotics, AI infrastructure, and connected edge computing markets.
Original – onsemi