onsemi has agreed to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, a deal that brings together power management, sensing, Edge AI compute, and wireless connectivity technologies as semiconductor vendors race to build integrated platforms for industrial IoT and Physical AI applications.
The acquisition, announced on 25th June, would position onsemi beyond its traditional strengths in power semiconductors and image sensing by adding Synaptics’ Edge AI processors, human-machine interface technologies, and wireless connectivity portfolio, including Wi-Fi and Bluetooth. The companies said the combination would expand onsemi’s total addressable market to $243 billion by 2030.
onsemi said the deal would strengthen its position across what it describes as the four pillars of Physical AI: power, sensing, connected compute, and control. Together, these technologies enable machines to sense their surroundings, process information locally, make decisions, and respond in real time.
“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.
The company said Synaptics would add an established Edge AI platform built around its Astra processors and neural processing units, alongside wireless connectivity technologies spanning Wi-Fi, Bluetooth, and GPS, plus an open-source software stack intended to accelerate Edge AI development.
Rahul Patel, President and CEO of Synaptics, said the combined company would offer integrated hardware and software platforms across the Edge AI stack, combining AI-native compute and connectivity with onsemi’s intelligent power and sensing technologies.
The companies expect the acquisition to strengthen their presence in automotive, industrial automation, robotics, and AI infrastructure markets, while enabling higher-value system-level solutions rather than standalone semiconductor devices.
Under the terms of the agreement, Synaptics shareholders will receive 1.35 shares of onsemi common stock for each Synaptics share, representing an enterprise value of approximately $7 billion. The transaction has been unanimously approved by the boards of both companies and is expected to close in mid-2027, subject to shareholder and regulatory approvals.
Neil Shah, Vice President of Research at Counterpoint Research, said the transaction reflected a broader shift in the semiconductor industry as suppliers reposition themselves for the next phase of AI.
“The acquisition of Synaptics by onsemi is exemplary of the shifting tides in the semiconductor landscape as we enter the AI era,” Shah said. “The traditional component suppliers are reinventing and pivoting to become a full stack solution provider, amassing different assets to fill in the gaps to address Edge AI and Physical AI.”
He added that combining onsemi’s power management and vision technologies with Synaptics’ Astra Edge AI compute platform, sensing capabilities, and connectivity portfolio would enable the combined company to target complete solutions across automotive, robotics, and industrial IoT applications rather than individual semiconductor components.
There’s plenty of other editorial on our sister site, Electronic Specifier! Or you can always join in the conversation by commenting below or visiting our LinkedIn page.
