On Semiconductor has agreed to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, marking a significant expansion of the chipmaker's capabilities in artificial intelligence hardware.
The Arizona-based company stated that the deal will increase its total addressable market by $30 billion, bringing the figure to $243 billion by 2030.
The acquisition is part of Onsemi's strategic push into physical AI technology, aiming to bolster its position in the rapidly evolving semiconductor landscape.
The move comes as semiconductor companies increasingly seek to consolidate their positions in the AI hardware market.
Onsemi's acquisition of Synaptics is expected to enhance its portfolio of sensors and connectivity solutions, which are critical for physical AI applications.
The all-stock nature of the deal suggests a confidence in the combined entity's future growth prospects, aligning with the broader trend of M&A activity in the tech sector.