tech
onsemi Synaptics deal: a $7bn bet on physical AI
onsemi is buying Synaptics in an all-stock deal worth about $7bn. The onsemi Synaptics deal bets that AI’s next wave lives not in the cloud, but in cars, factories and robots.
TL;DR
- onsemi is acquiring Synaptics for approximately $6.2 billion in an all-stock deal, with a total enterprise value of $7 billion.
- The acquisition focuses on 'physical AI,' embedding intelligence directly into devices and machines, rather than in large data centers.
- onsemi will gain Synaptics' 'connected compute' offerings, complementing its existing power and sensing chips.
- The deal is expected to close by mid-2027, pending shareholder and regulatory approvals.
- onsemi anticipates the merger will boost adjusted earnings within 18 months and expand its addressable market by $30 billion.
- Investor reaction was mixed, with onsemi shares falling post-announcement while Synaptics shares climbed.