On Semiconductor acquires Synaptics for $7B in largest-ever deal, pushes physical AI

On Semiconductor has agreed to buy Synaptics for nearly $7 billion in an all-stock deal—the company's largest acquisition ever—to accelerate its pivot into physical artificial intelligence and intelligent systems. The deal will boost On Semiconductor's total addressable market to $243 billion by 2030, adding immediate connected compute capabilities and expanding its software and ecosystem reach.

Under the terms, Synaptics shareholders will receive 1.350 shares of On Semiconductor common stock per share held, and Synaptics will place a board member on On Semiconductor's board. The deal is expected to close in mid-2027. On Semiconductor, known for power and sensing solutions in automotive and EV industries and as a major silicon carbide producer, will inherit Synaptics' edge AI and sensor capabilities.

The acquisition fits a broader M&A wave across semiconductor and AI infrastructure players. Qualcomm announced its own deal this week for AI startup Modular to strengthen software capabilities, and Salesforce said it is buying Fin, an AI customer service platform, for $3.6 billion. This month alone, Capital One bought Brex for $5.15 billion.

For architects shipping on-device AI, the deal signals consolidation in edge silicon and sensor fusion: On Semiconductor can now bundle Synaptics' touch, connectivity and compute IP with its own power and analog expertise, creating an integrated platform for physical AI use cases from robotics to automotive to AR/VR, rather than integrating disparate suppliers.