onsemi and Synaptics have entered into a definitive agreement for onsemi to acquire Synaptics in an all-stock transaction valued at approximately $7 billion.
Under the terms of the deal, Synaptics shareholders will receive 1.350 shares of onsemi common stock for each Synaptics share, representing about a 19% premium based on the companies’ 10-day volume-weighted average stock prices.
This acquisition marks a significant step in onsemi’s push to evolve into a global leader in intelligent systems.
By integrating Synaptics’ edge AI computing capabilities, along with its human-machine interface and wireless connectivity technologies, onsemi is set to expand beyond its traditional strengths in power and sensing.
The combined company aims to deliver more comprehensive, system-level solutions across key markets, including automotive, industrial, and AI data centers.
It also positions onsemi to play a central role in the emerging Physical AI landscape, potentially expanding its total addressable market by $30 billion to reach $243 billion by 2030.
Strategic and Financial Highlights
The deal is expected to bring several key advantages:
- Expanding from AI infrastructure to Physical AI: onsemi already has a strong presence across the AI infrastructure stack, from energy systems to data centers. With Synaptics, it can extend into intelligent edge applications, enabling systems that can sense, process, and act in real time across use cases such as autonomous driving, robotics, and AR/VR.
- Strengthening edge AI compute capabilities: Synaptics’ Astra platform brings together purpose-built AI processors, NPUs for multimodal intelligence, and a robust wireless connectivity portfolio including Wi-Fi, Bluetooth, and GPS. This is supported by an open-source software stack designed for faster deployment.
- Complementary portfolios driving growth: The combination is expected to accelerate product innovation and increase content per platform, while deepening customer engagement. It also shifts the business mix toward higher-value, differentiated system solutions that incorporate both hardware and software.
- Strong financial outlook: The transaction is projected to be accretive to non-GAAP EPS within 18 months of closing, with expected annual synergies of $200 million. Gross margins are anticipated to align with onsemi’s long-term model, and the company plans to maintain its current capital return policy during the transition.
Transaction Details
The agreement has been unanimously approved by both companies’ boards. Once completed, Synaptics shareholders are expected to own about 12% of the combined entity on a fully diluted basis. One Synaptics board member will also join onsemi’s board.
The transaction is expected to close by mid-2027, subject to shareholder approval, regulatory clearances, and customary closing conditions.
Both companies also reaffirmed their previously issued financial outlooks, onsemi for Q2 2026 and Synaptics for its fiscal Q4 2026.
Leadership Comments
“As artificial intelligence moves beyond the cloud and into the physical world, including automotive and industrial, the next phase of innovation will depend on systems that can sense, decide, act and adapt in real time,” said Hassane El-Khoury, President and CEO of onsemi. “This shift towards Physical AI will require Power, Sense, Connected Compute and Control to work together seamlessly. The addition of Synaptics helps position onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data center and into edge applications. 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.”
“Today’s announcement marks an important step in accelerating Synaptics’ growth and leadership in Edge AI and Physical AI,” said Rahul Patel, Synaptics President and CEO. “Together with onsemi, we will combine Synaptics’ strengths in AI-native compute, connectivity, and human-machine interface with onsemi’s leadership in intelligent power and sensing to offer customers integrated solutions and development platforms across every layer of the Edge AI stack, deepening customer engagement and expanding across a greater total addressable market. The all-stock structure allows our shareholders to participate in the compelling growth and value creation opportunities ahead, and I look forward to working with the onsemi leadership team to help realize the full value of this combination.”
