ON Semiconductor has agreed to acquire Synaptics in an all-stock deal valued at nearly $7 billion, the company's largest acquisition ever, as it seeks to expand its physical AI and connected computing portfolio.
ON Semiconductor has agreed to acquire Synaptics in an all-stock transaction valued at nearly $7 billion, the Arizona-based chipmaker's largest deal to date, as technology companies accelerate their push to strengthen artificial intelligence capabilities.
The acquisition will give ON Semi's total addressable market a $30 billion boost, expanding it to $243 billion by 2030, the company said. ON Semi framed the deal as central to its ambitions in physical AI — the application of AI to real-world sensing, computing, and automated systems.
"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 in a statement.
Under the terms of the agreement, Synaptics shareholders will receive 1.350 shares of ON Semiconductor common stock for each share they hold. ON Semi will also add a Synaptics board member as part of the arrangement.
The deal is expected to close in the middle of 2027.
Shares of ON Semi fell approximately 6% in after-hours trading following the announcement, while Synaptics shares rallied about 13%.
The transaction comes as deal activity in the technology sector has picked up pace. Qualcomm this week acquired infrastructure startup Modular to bolster its software capabilities. Earlier this month, Salesforce said it would buy AI customer service platform Fin for approximately $3.6 billion.
ON Semiconductor is widely known as a major producer of silicon carbide and has built its business around power and sensing solutions for the automotive and electric vehicle industries. The Synaptics acquisition is designed to extend that portfolio into connected computing and intelligent systems — areas the company sees as integral to the next phase of AI deployment beyond data centers.
The deal reinforces a broader pattern in the semiconductor and technology industries, where companies are pursuing acquisitions to assemble the hardware, software, and ecosystem components needed to compete in AI-driven markets.
El-Khoury is scheduled to discuss the transaction with reporters on Friday morning at 9:45 a.m. ET.
With the Synaptics deal now pending regulatory review, the key question for investors will be whether the all-stock structure and the 2027 close timeline create integration risk — particularly as competition for AI-capable silicon and software assets continues to intensify across the sector.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
More from Marc →Microsoft will raise Xbox Series S and Series X console prices by $100 to $150 starting August 1, blaming memory and storage costs that have more than doubled as AI chipmakers compete for limited supply.
CryptoQuant is urging Michael Saylor's Strategy to pause bitcoin purchases and rebuild its USD cash reserve, warning that dividend coverage has fallen to just 14 months as the company's shares hit a fresh 52-week low.
Apple raised prices on MacBook and iPad models Thursday, citing a surge in memory and storage costs driven by AI data center demand, while warning that further increases are likely ahead.
Written for readers who already know the basics — markets, AI, and the policy decisions that shape both.