Onsemi acquires Synaptics in $7 billion all-stock deal to build physical AI hardware platforms.
Onsemi and Synaptics announced late Thursday that they had entered into an agreement under which Onsemi will acquire Synaptics in an all-stock transaction valued at approximately $7 billion. The takeover will transform Onsemi from a maker of sensor and power management semiconductors into a company with a comprehensive portfolio of products for AI infrastructure, automotive, client, industrial, robotics, and AR/VR applications.
Onsemi's acquisition of Synaptics is strategically significant. Synaptics has a highly diversified product portfolio spanning compute and processing solutions, touch and biometric sensors, display solutions, and wireless connectivity. By contrast, Onsemi has primarily focused on power management devices and sensors. The two companies state that by merging their product portfolios, they will have key building blocks—power, sense, connectivity, compute, and control—to address the physical AI market.
With its Edge AI platform combining dedicated AI processors, neural processing units (NPUs), wireless connectivity technologies including Wi-Fi, Bluetooth, and GPS, and an open-source software stack, Synaptics has a more comprehensive product portfolio for Physical AI than Onsemi. However, Synaptics has been losing money in 2025–2026 as its revenue dropped sharply from 2022 levels. In contrast, while Onsemi's sales have been declining since 2022 without signs of recovery, the company has remained profitable. This disparity likely motivated Synaptics to accept an all-stock acquisition.
"Together with onsemi, we will combine Synaptics' strengths in AI-native compute, connectivity, and human-machine interface with onsemi's leadership in intelligent power and sensing to offer customers integrated solutions and development platforms across every layer of the Edge AI stack, deepening customer engagement and expanding across a greater total addressable market," said Rahul Patel, chief executive of Synaptics.
Developing a comprehensive platform for robotics and physical AI applications may create a combined company greater than the sum of its parts. Today, many developers in automotive, industrial, and robotics prefer integrated platforms combining compute, connectivity, sensing, power management, and software from a single supplier. Given the rapid pace of technological evolution, many developers lack the time to build their own platforms from components sourced across multiple suppliers, making an integrated offering a competitive advantage. Historically, AMD acquired ATI for chipsets and graphics, while Qualcomm acquired numerous companies to expand its product portfolio and build new solutions.
"The next phase of innovation will depend on systems that can sense, decide, act and adapt in real time," said Hassane El-Khoury, chief executive of Onsemi. "This shift towards Physical AI will require Power, Sense, Connected Compute and Control to work together seamlessly. The addition of Synaptics helps position onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data center and into edge applications. This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position Onsemi to deliver greater value as customers increasingly seek intelligent systems."
Synaptics could benefit from Onsemi's manufacturing capabilities, particularly for automotive and industrial products using mature process technologies. However, given these products' lengthy lifecycles and customers' resistance to change, rapid migration of Synaptics' portfolio to Onsemi fabs is unlikely, at least for these applications. For client devices and emerging applications, Synaptics will likely leverage Onsemi's semiconductor production capacity.
The acquisition has received unanimous approval from both companies' boards. Under the agreement, each Synaptics shareholder will receive 1.35 shares of Onsemi common stock for every Synaptics share owned, meaning Synaptics investors will hold approximately 12% of the combined company after closing. Based on the companies' average volume-weighted share prices over the previous ten trading days, the offer represents a premium of approximately 19%—below typical takeover premiums. One Synaptics board member is expected to join Onsemi's board. The deal is expected to close in mid-2027 following Synaptics shareholder approval and regulatory clearance.