Onsemi agrees to acquire Synaptics for $7 billion to expand physical AI

Semiconductor maker onsemi has agreed to acquire Synaptics in an all-stock deal valued at approximately $7 billion, marking the Arizona-based company's largest acquisition to date as it pivots toward physical AI and intelligent systems. Under the agreement, which received unanimous approval from both boards, Synaptics shareholders will receive 1.35 shares of onsemi stock for each share they hold, representing a 19% premium over recent trading prices. The transaction aims to combine onsemi's expertise in power and sensing with Synaptics' Edge AI processors and wireless connectivity solutions, positioning the merged entity to serve automotive, industrial, robotics, and augmented reality markets. onsemi expects the deal, which is projected to close in mid-2027 after regulatory and shareholder approvals, to expand its total addressable market by $30 billion, bringing the combined opportunity to $243 billion by 2030.