On Semiconductor Acquires Synaptics for $7 Billion in Physical AI Push

On Semiconductor agreed to acquire Synaptics in a nearly $7 billion all-stock deal to bolster its push into physical artificial intelligence technology. The Arizona-based company said the acquisition will expand its total addressable market by $30 billion to $243 billion by 2030 and strengthen its intelligence systems portfolio, marking On Semiconductor's largest deal to date. Technology companies are accelerating acquisitions to strengthen AI capabilities, with Qualcomm and Salesforce announcing similar deals this month.

On Semiconductor Sets 1.350 Share Exchange Ratio

Under the transaction terms, Synaptics shareholders will receive 1.350 shares of On Semiconductor's common stock per share held. The deal is expected to close in the middle of 2027. On Semiconductor will also add a Synaptics board member as part of the acquisition.

Shares React to Acquisition News

Shares of On Semiconductor fell about 6% after the bell, while Synaptics rallied about 13%. The stock movements followed the acquisition announcement.

On Semiconductor CEO Explains Strategic Rationale

"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," said On Semiconductor CEO Hassane El-Khoury.

On Semiconductor Focuses on Automotive Power Solutions

On Semiconductor is a major producer of silicon carbide and is widely known for its power and sensing solutions for the automotive and electric vehicle industries. The company is based in Arizona.

FAQ

What is the value of On Semiconductor's acquisition of Synaptics?

On Semiconductor agreed to acquire Synaptics in a nearly $7 billion all-stock deal. Synaptics shareholders will receive 1.350 shares of On Semiconductor's common stock per share held.

When will the On Semiconductor-Synaptics deal close?

The acquisition is expected to close in the middle of 2027, according to the companies' announcement.

Why is On Semiconductor acquiring Synaptics?

On Semiconductor stated the acquisition will bolster its push into physical artificial intelligence technology, add connected compute capabilities, expand its software and ecosystem reach, and increase its total addressable market by $30 billion to $243 billion by 2030.