Onsemi acquires neural network technology company Synaptics in $7bn all-stock deal

Onsemi has acquired Synaptics in an all-stock transaction valued at around $7 billion. In a statement, Onsemi said that adding Synaptics' differentiated Edge AI compute franchise will allow it to extend its capabilities beyond power and sensing to intelligent systems, delivering greater value to a broad range of end markets. The deal is expected to close by mid-2027, subject to approval from Synaptics stockholders. Launched in 1986, California-based Synaptics originally developed chips that utilized neural networks, producing computer-to-human interface devices based on the technology. The majority of its products are based on sensing technology, including optical sensing offerings. As artificial intelligence moves beyond the cloud and into the physical world, including automotive and industrial, the next phase of innovation will depend on systems that can sense, decide, act, and adapt in real time, said Hassane El-Khoury, president and CEO 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. 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, Synaptics president and CEO. The deal comes almost a year after Onsemi acquired Aura Semiconductor's Vcore power technologies for an undisclosed amount. In January 2025, the company purchased the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo for $115 million in cash. In March 2025, Onsemi scrapped its efforts to acquire Allegro MicroSystems for $6.9bn, after Allegro described the proposed purchase as unsolicited and said the company's board of directors had determined the proposal was inadequate.