On Semiconductor, an Arizona-based chipmaker focused on power and sensing products, has agreed to buy Synaptics in an all-stock deal worth nearly US$7 billion to expand its push into physical AI.

Synaptics, a US chip company that makes processors, microcontrollers, sensing chips, and wireless chips for internet of things devices, will bring computing capabilities to On Semiconductor.

Synaptics shareholders will receive 1.350 On Semiconductor shares for each share they hold. The companies expect the deal to close in mid-2027.

On Semiconductor said the acquisition would expand its systems portfolio and increase its total addressable market by US$30 billion to US$243 billion by 2030.

It also said a Synaptics board member will join its board. After the announcement, On Semiconductor shares fell about 6% in after-hours trading, while Synaptics shares rose about 13%.

Synaptics said it is powering edge AI through processors, microcontrollers, sensing, and wireless chips for internet of things devices using Wi-Fi, Bluetooth, Bluetooth Low Energy, Thread, ultra-wideband, and Global Navigation Satellite System and Global Positioning System technologies.

Its core internet of things product revenue grew 53% year over year in its latest reported quarter.

🔗 Source: Onsemi

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