onsemi has agreed to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, representing a 19% premium to the volume weighted average closing prices of both companies over the last 10 trading days. The acquisition is designed to accelerate onsemi’s evolution from a power and sensing specialist to a leading provider of intelligent systems for Physical AI, expanding its total addressable market by $30 billion to $243 billion by 2030. The transaction combines Synaptics’ Edge AI compute franchise with onsemi’s automotive and industrial capabilities, positioning the combined entity at the intersection of Power, Sense, Connected Compute and Control.

Strategic Rationale

The combination is expected to deliver substantial value by extending onsemi’s reach from AI data centers to the intelligent edge. Synaptics’ Astra platform, which includes AI processors, NPUs, and wireless connectivity solutions, will add immediate connected compute capabilities to onsemi’s portfolio. This integration is anticipated to enable systems that can sense, decide, act and adapt in real time across Physical AI applications such as autonomous driving, robotics, and AR/VR. The merger is also projected to increase onsemi’s exposure to higher-value, differentiated system solutions with embedded IP and software, supporting improved mix and margin expansion.

Financial Profile

The transaction is expected to be accretive to non-GAAP EPS within 18 months of closing, with an expected $200 million in annual synergies. Gross margins are anticipated to remain consistent with onsemi’s long-term financial model. The company has committed to maintaining its existing capital return policy during the pendency period. Both companies have reiterated their previously provided financial outlooks, with onsemi standing by its Q2 FY26 guidance and Synaptics its fiscal Q4 FY26 outlook.

Transaction Details

Under the terms of the definitive agreement, which has been unanimously approved by the Boards of Directors of both companies, Synaptics stockholders will receive 1.350 shares of onsemi common stock for each share held. This exchange ratio implies pro forma ownership of approximately 12% for Synaptics stockholders on a fully diluted basis. One member of the Synaptics Board of Directors is expected to join onsemi’s Board of Directors upon closing. The transaction is expected to close in mid-2027, subject to approval by Synaptics stockholders and receipt of required regulatory approvals.

onsemi has announced the launch of GaNEXUS™, a new gallium nitride (GaN) power portfolio engineered to deliver higher efficiency, greater power density, and improved thermal performance. The initial portfolio includes GaNEXUS FETs sampling across voltage ranges from 40V to 650V, including 650V GaNEXUS Smart GaN FETs with integrated protection features, targeting applications in AI data centers, industrial automation, robotics, and energy infrastructure.

Portfolio Overview and Strategic Context

The GaNEXUS portfolio expands onsemi's intelligent power offerings alongside its existing silicon and EliteSiC technologies, giving customers greater flexibility to optimize performance, efficiency, thermal behavior, and total system cost across the full power-delivery architecture. The addition of GaNEXUS is positioned to address growing design challenges around energy consumption, thermal management, and system size as AI infrastructure, electrification, and industrial automation continue to drive demand for more compact and efficient power architectures.

AI data centers alone are expected to consume up to 9% of U.S. electricity generation by 2030, with power and cooling costs accounting for up to 40% of total data center operating expenses.

Key Portfolio Highlights

• GaNEXUS FETs sampling across voltage ranges from 40V to 650V
• 650V GaNEXUS Smart GaN FETs with integrated protection features to simplify system integration and improve reliability
• Faster switching speeds, lower switching losses, higher power density, and improved thermal performance compared to conventional silicon-based solutions
• Compatible with onsemi's Treo Platform for integrated sensing, control, protection, and power management
• Thermally enhanced packages with industry-standard footprints including TOLL Bottom Cooling, TOLT Top Cooling, and dual cooling 3.3mm x 3.3mm and 5mm x 6mm packages

Performance Benefits by Application Segment

GaNEXUS delivers distinct performance advantages across both low- to medium-voltage and higher-voltage application segments. The following tables summarize the key performance benefits:

Low- and Medium-Voltage Systems (including AI server 48V intermediate bus converter, battery backup units, and motor drives):

Higher-Voltage Applications (including AI power shelves, high-voltage DC-DC conversion, PFC, and LLC power stages):

System-Level Integration with Treo Platform

When paired with onsemi's Treo Platform for integrated sensing, control, protection, and power management, GaNEXUS is designed to deliver complete system-level power solutions. This system-level approach is intended to help customers simplify design complexity, accelerate development and qualification, reduce thermal and cooling requirements, and optimize performance across the full power delivery chain.

"Our GaNEXUS portfolio is enabling new architectures for power system design," said Antoine Jalabert, vice president of the GaN division at onsemi. "As customers push for more power in less space, it gives engineers greater flexibility to overcome constraints that have limited conventional power architectures."

About onsemi

onsemi delivers intelligent power and sensing technologies that enable electrification, energy efficiency, safety, and automation across automotive, industrial, and AI data center end-markets. The company is a component of the S&P 500® index.