The 'Silicon Hills' Mega-Merger: Texas Instruments’ $7.5B Acquisition of Austin-Based Silicon Labs Signals a New Era for Central Texas Tech
In one of the most significant technology announcements Central Texas has seen in years, Texas Instruments (Nasdaq: TXN) revealed on February 4, 2026, that it will acquire Austin-based Silicon Labs (Nasdaq: SLAB) in an all-cash transaction valued at approximately $7.5 billion. Under the terms of the agreement, Silicon Labs shareholders will receive $231.00 per share, with the transaction expected to close in the first half of 2027, pending regulatory approvals and stockholder consent.
The acquisition unites two companies deeply rooted in Texas innovation. Texas Instruments, headquartered in Dallas, is a global semiconductor powerhouse, while Silicon Labs has long been considered one of Austin’s homegrown “blue-chip” tech success stories—an anchor of the city’s downtown tech scene and a familiar name within the Silicon Hills ecosystem.
From an industry perspective, the deal positions Texas Instruments as a global leader in embedded wireless connectivity, combining Silicon Labs’ mixed-signal and low-power wireless portfolio with TI’s expansive analog and embedded processing capabilities.
“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy,” said Haviv Ilan, chairman, president and chief executive officer of Texas Instruments. “Together, we can do more.”
Why the Merger Matters to Silicon Hills
Beyond balance sheets and earnings projections, this merger represents a defining moment for Austin’s evolving tech identity. Silicon Labs has played a visible role in shaping downtown Austin’s technology culture—supporting local nonprofits, investing in STEM education, and helping attract global engineering talent to the region.
“Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way,” said Matt Johnson, president and CEO of Silicon Labs. “By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation.”
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For Austin, the consolidation of two major semiconductor players raises important community questions: how local office footprints may shift, what happens to Silicon Labs’ philanthropic programs, and how talent mobility could reshape hiring across the region. As TI integrates Silicon Labs’ roughly 1,200 wireless connectivity products into its broader portfolio, industry observers expect ripple effects across commercial real estate, engineering recruitment, and startup spin-offsthroughout Central Texas.
Economic Impact and Long-Term Growth
From a strategic standpoint, Texas Instruments expects the acquisition to generate approximately $450 million in annual manufacturing and operational synergies within three years after closing. A key component of that strategy includes reshoring Silicon Labs’ manufacturing from external foundries into TI’s internally owned, low-cost U.S. fabrication facilities, including advanced 300mm wafer fabs.
The combined company is also expected to benefit from expanded customer access through Texas Instruments’ global sales channels, e-commerce infrastructure, and long-standing direct customer relationships. Silicon Labs has delivered approximately 15% compound annual revenue growth since 2014, a trajectory TI executives believe can accelerate further at scale.
The transaction is expected to be accretive to Texas Instruments’ earnings per share in the first full year post-close, excluding transaction-related costs. TI also reiterated its commitment to returning 100% of free cash flow to shareholders over time through dividends and share repurchases.
A Turning Point for Austin’s Tech Community
As Austin’s tech scene continues to grow up, the Texas Instruments–Silicon Labs merger feels like a milestone moment. Silicon Hills didn’t arrive here overnight—it was built over decades by engineers, startups, and homegrown companies that chose to stay and scale locally. This deal places Austin even more firmly on the global semiconductor map, while signaling a shift from emerging hub to established heavyweight.
For many in the community, the news lands with a mix of pride and pause. Silicon Labs has long been part of Austin’s tech fabric, not just as an employer but as a civic presence. As the company enters its next chapter under Texas Instruments, employees, neighbors, and industry peers alike will be paying attention—not just to what grows, but to what’s preserved as Central Texas tech continues to evolve.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.