onsemi to Acquire Synaptics in $7 Billion Deal to Expand Physical AI Push

Semiconductor company onsemi announced on June 25 that it has entered into a definitive agreement to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, expanding its portfolio from power and sensing technologies into intelligent systems for Physical AI.

The transaction gives Synaptics shareholders 1.350 shares of onsemi common stock for each Synaptics share, representing a 19% premium over the companies' 10-day volume-weighted average closing prices. The deal has been unanimously approved by the boards of both companies and is expected to close in mid-2027, subject to regulatory approvals and Synaptics shareholder approval.

The acquisition is intended to strengthen onsemi's position across what it describes as the four pillars of Physical AI: Power, Sense, Connected Compute, and Control. The company said combining its semiconductor portfolio with Synaptics' Edge AI compute, human-machine interface, and wireless connectivity technologies would expand its total addressable market by $30 billion to an estimated $243 billion by 2030.

Physical AI Strategy Extends Beyond AI Data Centers

The company said the acquisition extends its reach beyond AI infrastructure into edge AI applications such as autonomous vehicles, robotics, industrial automation, and augmented and virtual reality. The move comes as investment across AI infrastructure continues to broaden beyond hyperscale computing toward intelligent edge systems where AI models run closer to devices and machines.