onsemi to Acquire Synaptics in $7 B All-Stock Deal, Targeting Physical AI

ON Semiconductor (onsemi) and Synaptics announced an all-stock acquisition valued at about $7 billion. The deal swaps 1.35 onsemi shares for each Synaptics share, giving Synaptics investors roughly 12% of the combined company. Both boards have approved the transaction, which is slated to close in mid-2027 pending shareholder and regulatory approval.

Onsemi buying cash-strapped Synaptics in $7 billion all-stock deal — smart power meets edge AI hardwareON Semiconductor (ON) Stock Plunges 14% on $7B Synaptics Acquisition AnnouncementBenzingaON Semiconductor seals $7 billion Synaptics deal, shares react sharply to all-stock dilution riskEP&T Magazine

onsemi’s core business is power management, analog and sensing for automotive, industrial and data-center applications. Synaptics adds edge-AI processors, neural units, wireless connectivity and human-machine-interface technology, but has posted revenue declines. Executives say the merger creates a “Physical AI” platform that combines power, sense, compute and control for robotics, autonomous vehicles and AR/VR.

onsemi to acquire Synaptics in $7bn deal to expand Edge AI and industrial IoT capabilitiesOnsemi buying cash-strapped Synaptics in $7 billion all-stock deal — smart power meets edge AI hardwareonsemi to Buy Synaptics in $7 Billion DealIs onsemi's Synaptics Buyout a Defining Bet on the Physical AI Market?EP&T MagazineBenzinga

The deal values Synaptics at roughly $7 billion, a 19% premium to the ten-day volume-weighted average price. onsemi expects the transaction to lift its addressable market by $30 billion to $243 billion by 2030, generate $200 million of annual cost synergies and become accretive to non-GAAP EPS within 18 months.

EP&T Magazine

ON Semiconductor CEO Hassane El-Khoury said the acquisition fills a portfolio gap by adding connected-compute and software, placing onsemi at the intersection of the four Physical-AI pillars. Synaptics CEO Rahul Patel said the combination will deliver integrated edge-AI solutions and expand the total addressable market for both companies.

onsemi to Buy Synaptics in $7 Billion Deal

onsemi’s shares dropped 13.6%-21.8% in after-hours trading, with analysts flagging dilution, integration risk and limited revenue-synergy guidance. Synaptics’ stock rose 4.7%-11%, reflecting investor optimism about the premium and continued exposure to the merged entity.

ON Semiconductor seals $7 billion Synaptics deal, shares react sharply to all-stock dilution risk

The deal shifts onsemi from a power-centric supplier toward a full-stack player competing with Analog Devices, Texas Instruments and Infineon in the Physical-AI market. Bundling power, sensing, compute and control aims to meet rising demand for edge-intelligent systems in autonomous vehicles, robotics and AR/VR.

Is onsemi's Synaptics Buyout a Defining Bet on the Physical AI Market?

Sources differ on the TAM outlook: some cite a $30 billion uplift to a $243 billion market, while others describe the range as “anywhere from $30 billion to $243 billion.” Reported onsemi share declines also vary, with figures of 14%, 13.6% and 21.8% appearing across outlets.

ON Semiconductor Buys Synaptics, Stock Drops 20%

• “CEO Hassane El-Khoury said the acquisition positions ON Semiconductor to benefit from the growing Physical AI market by combining power, sensing, compute and control technologies.” — Hassane El-Khoury, President and CEO, onsemi

Benzinga

• “Synaptics President and CEO Rahul Patel said the combination brings together complementary technologies to deliver integrated Edge AI platforms.” — Rahul Patel, President and CEO, Synaptics

Benzinga

• “The next phase of [AI] innovation will depend on systems that can sense, decide, act and adapt in real time,” — Hassane El-Khoury, onsemi

Onsemi buying cash-strapped Synaptics in $7 billion all-stock deal — smart power meets edge AI hardware

• “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.” — Hassane El-Khoury, onsemi

EP&T Magazine

The deal awaits Synaptics shareholder approval and antitrust clearance before a mid-2027 close. After closing, a Synaptics director will join onsemi’s board and the firms will begin integrating Synaptics’ Astra platform with onsemi’s power and sensing lines for edge-AI markets.

Onsemi buying cash-strapped Synaptics in $7 billion all-stock deal — smart power meets edge AI hardware