ON Semiconductor has announced its decision to acquire Synaptics in an all-stock transaction valued at nearly $7 billion, enhancing its focus on physical artificial intelligence technology.
The Arizona-based firm highlighted that this acquisition will expand its total addressable market by $30 billion, increasing it to $243 billion by 2030, while also strengthening its portfolio of intelligent systems. This marks ON Semiconductor's most substantial acquisition to date.
Following the announcement, ON Semiconductor's stock dipped approximately 6%, contrasting with a 13% increase in Synaptics shares.
Hassane El-Khoury, CEO of ON Semiconductor, remarked, "This transaction will immediately enhance our connected compute capabilities, broaden our software and ecosystem reach, and enable ON Semiconductor to provide greater value as customers increasingly demand intelligent systems."
The tech sector is currently in an acquisition frenzy, as companies strive to enhance their artificial intelligence capabilities. In a similar vein, Qualcomm recently acquired infrastructure startup Modular to improve its software offerings. Meanwhile, Salesforce announced plans to buy AI customer service platform Fin for around $3.6 billion this month.
The ON Semiconductor-Synaptics acquisition is anticipated to be finalized by mid-2027. According to the terms of the deal, Synaptics shareholders will receive 1.350 shares of ON Semiconductor's common stock for each share they own.
Additionally, ON Semiconductor will appoint a member from Synaptics to its board. Known for its production of silicon carbide, ON Semiconductor is recognized for its power and sensing solutions, particularly within the automotive and electric vehicle sectors.


