On Semiconductor strikes $7 billion deal for Synaptics in physical AI push

CNBC June 25, 2026 2 views

On Semiconductor is buying Synaptics for nearly $7 billion in its largest acquisition ever.
The deal accelerates its push into physical AI.
Technology companies are hitting acquisition mode in a race to strengthen AI capabilities.

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.
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.
Tune in at 9:45 a.m. ET on Friday as On Semi CEO Hassane El-Khoury joins CNBC TV to discuss the deal. Watch in real time on CNBC+ or the CNBC Pro stream.
<small>Source: CNBC</small>

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