Texas Instruments

Texas Instruments just agreed to buy Silicon Labs for about 7.5 billion dollars, adding roughly 1,200 products that connect smart home, industrial, and smart city devices to the internet. Silicon Labs has grown revenue about 15 percent a year on average since 2014, so this bolts a fast grower onto a much bigger sales machine.

The plan is to move Silicon Labs production out of outside factories and into Texas Instruments' own American plants, which management expects to save about 450 million dollars a year within three years of closing. That is on top of a business already keeping about 29 cents of every sales dollar as profit, with revenue up 13 percent over the past year.

This is an all cash deal that will not close until sometime in the first half of 2027, and it needs regulatory approval plus a shareholder vote. Texas Instruments is funding it partly with borrowed money, and the promised 450 million dollars in savings depends on moving another company's manufacturing in house, which is never simple.

Chip demand runs in booms and busts, and a slowdown in factories, cars, or AI spending would hit sales quickly. Roughly a fifth of revenue comes from China, so trade tensions or new local competitors there remain a real risk while the company digests a 7.5 billion dollar purchase.