GoKawiilOn Semiconductor has agreed to buy Synaptics in a nearly $7 billion all-stock deal to bolster its push into physical artificial intelligence technology.
The Arizona-based company said the deal will give its total addressable market a $30 billion boost to $243 billion by 2030 and strengthen its intelligence systems portfolio. It's also the company's largest deal to date.
Shares of On Semi fell about 6% after the bell, while Synaptics rallied about 13%.
"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," said On Semiconductor CEO Hassane El-Khoury.
Technology companies are hitting acquisition mode as they race to strengthen their AI capabilities.
Qualcomm this week snapped up infrastructure startup Modular to beef up its software capabilities. This month, Salesforce said it will buy AI customer service platform Fin for about $3.6 billion.
The On Semi-Synaptics deal is expected to close in the middle of 2027. As part of the acquistion Synaptics shareholders will receive 1.350 shares of On Semiconductor's common stock per share held.
On Semi will also add a Synaptics board member.
On Semiconductor is a major producer of silicon carbide and is widely known for its power and sensing solutions for the automotive and electric vehicle industries.