The semiconductor giant is paying a 19% premium to absorb Synaptics' edge computing and connectivity portfolio, expanding its addressable market by $30 billion.
Onsemi just made its biggest move in years. The power and sensing semiconductor company announced plans to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, creating a combined entity that aims to dominate the emerging Edge AI and Physical AI markets.
Under the terms of the deal, Synaptics shareholders will receive 1.350 shares of onsemi for each Synaptics share they hold. That represents a 19% premium over the volume-weighted average closing prices from the preceding ten trading days. Once the transaction closes, former Synaptics shareholders will own approximately 12% of the combined company on a fully diluted basis.
The deal is expected to close around mid-2027, pending Synaptics shareholder approval and the usual regulatory clearances. Onsemi also authorized a $6 billion share repurchase program effective January 2026. The company projects $200 million in annual synergies from the combination and expects the acquisition to become accretive to its non-GAAP earnings per share within 18 months of closing, with gross margins aligning to onsemi’s established long-term model.
The strategic logic: why Synaptics, why now #
Synaptics specializes in Edge AI processing, human-machine interface solutions, and wireless connectivity. Onsemi has built its reputation on power semiconductors and sensing technologies, particularly for the automotive and industrial markets.
Onsemi claims this acquisition will expand its total addressable market by $30 billion, bringing the figure to $243 billion by 2030. Synaptics reported Q1 fiscal 2026 revenue of $292.5 million, representing a 14% increase year-over-year.
What this means for investors #
For onsemi shareholders, the key question is whether the promised $200 million in annual synergies will actually materialize. The 18-month timeline for EPS accretion is worth watching closely. If onsemi hits that target, it validates the deal thesis and likely supports the stock price. If integration challenges push that timeline out, the dilution from issuing all those new shares could weigh on per-share metrics in the interim. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our