On Semiconductor to acquire Synaptics in $7 billion all-stock deal for physical AI push

The acquisition expands Onsemi's total addressable market to $243 billion by 2030, signaling a major consolidation in the sensor and interface chip sector as companies race to capture physical AI hardware demand.

By Handelsavisen Newsroom · Automated 2026-06-25 21:13 UTC · 1 min read

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 said the deal will give its total addressable market a $30 billion boost, raising the figure to $243 billion by 2030.

The move comes as semiconductor stocks have rallied broadly, with the KOSPI surging over 5% earlier this week following strong earnings from Micron.

The acquisition is structured as an all-stock deal, aligning the financial interests of both companies as they pivot toward the growing physical AI segment.

The move comes as semiconductor stocks have rallied broadly, with the KOSPI surging over 5% earlier this week following strong earnings from Micron.

The acquisition underscores the industry's shift toward integrating AI capabilities into edge devices and sensors, a trend that has driven significant investor interest in companies with exposure to automotive, industrial, and consumer electronics markets.

Onsemi's strategy to bolster its physical AI push through this acquisition positions it to compete more effectively in a market where demand for intelligent sensors and interface chips is accelerating.