Onsemi has acquired Synaptics Incorporated to secure edge AI computing and wireless connectivity capabilities, expanding its business scope from its existing power and sensing businesses to the entire spectrum of Physical AI. With this deal, Onsemi's Total Market Size (TAM) is projected to reach $243 billion by 2030, an increase of $30 billion.

ON Semi announced on the 29th that it has signed a definitive agreement to acquire Synaptics through a wholly-owned stock exchange. The total enterprise value is approximately $7 billion, under the condition that one share of Synaptics common stock is exchanged for 1.350 shares of ON Semi common stock.

This corresponds to a premium of approximately 19% based on the 10-day volume-weighted average closing price (VWAP) of both companies. The transaction is expected to be completed in mid-2027, subject to standard conditions such as approval from Synaptics shareholders and regulatory authorities.

Hassane El-Khoury, President and CEO of ON Semi, stated, “As AI expands beyond the cloud into physical environments such as automotive and industrial sectors, systems capable of sensing, deciding, executing, and adapting in real time have become key. With the addition of Synaptics, we expect to be positioned at the intersection of power, sensing, connected computing, and control technologies, enabling us to extend beyond AI data centers to edge applications.”

Synaptics' Astra platform features a dedicated AI processor and NPU, and provides a wireless connectivity portfolio including Wi-Fi, Bluetooth, and GPS, along with an open-source software stack.

Through this, ON Semi plans to secure the capability to supply integrated system solutions applicable across physical AI applications, such as autonomous driving, robotics, and AR/VR.

ON Semi expects that this acquisition will have a positive impact on non-GAAP earnings per share (EPS) within 18 months of completion and generate synergies worth approximately $200 million annually.

At the close of the transaction, Synaptics' shareholder stake will be approximately 12% on a fully diluted basis.

One member of Synaptics' board of directors is set to join ON Semi's board of directors, and ON Semi announced that it will maintain its existing shareholder return policy until the transaction is completed.

Morgan Stanley and JPMorgan Securities LLC served as financial advisors for ON Semi, while Qatalyst Partners served for Synaptics.