ON Semiconductor to buy Synaptics in $7 billion all-stock deal

ON Semiconductor agreed to buy Synaptics in an all-stock transaction valued at about $7 billion, a deal that would broaden the chipmaker’s reach into edge AI, connected computing and human-machine interface technology.

Under the terms reported, Synaptics shareholders will receive 1.35 ON Semiconductor shares for each Synaptics share. The companies said the offer implies roughly a 19% premium based on their 10-day volume-weighted average prices.

The announcement adds to a wave of semiconductor consolidation as chip companies look for more ways to serve devices, vehicles and industrial systems that are taking on more AI processing outside the data center.

Deal terms

ON Semiconductor said it expects about $200 million in annual synergies from the combination. It also said the transaction should be accretive to adjusted earnings per share within 18 months after closing.

The deal is expected to close in mid-2027, according to the reporting. One Synaptics board member is expected to join ON Semiconductor’s board.

Because the transaction is all-stock, ON Semiconductor shareholders will ultimately absorb dilution from the share issuance. That makes the exchange ratio, synergy targets and integration execution central points for investors.

Why ON wants Synaptics

ON Semiconductor is known for analog, power, sensing and industrial-automotive chips. Synaptics brings human-machine interface technology, connectivity products and an AI compute platform.

Together, the companies are positioning the acquisition around the shift of AI from cloud systems into devices and machines. ON Semiconductor has described that transition as part of edge AI and physical AI.

That strategic framing matters because it gives ON a larger footprint in the device layer of the market, where computing, sensing and connectivity increasingly overlap.

Chronology and reaction

The first public report of the deal came on June 25, 2026, and was later corroborated by additional reporting the same day.

Market reaction reflected the tension between strategic logic and deal risk. ON Semiconductor shares fell in after-hours trading after the announcement, while Synaptics shares rose.

That reaction suggests investors were weighing the premium, the all-stock structure and the integration burden against the promise of a broader product mix.

Oversight and execution risk

The transaction still has to clear the usual closing steps, including regulatory review and final integration planning. The reporting does not spell out every jurisdiction or condition yet.

The expected $200 million in synergies will also be watched closely, since large semiconductor combinations often face pressure to prove that overlap can be turned into operating savings.

The all-stock structure increases the importance of ON Semiconductor’s own share performance between now and closing, because the value Synaptics holders receive will move with ON’s stock.

What comes next

Investors should look for a company press release, investor presentation materials and any SEC filing with the definitive transaction terms.

Management commentary from ON Semiconductor CEO Hassane El-Khoury and Synaptics CEO Rahul Patel will likely focus on the strategic fit, employee implications and customer continuity.

Analysts will also watch for questions about integration, valuation discipline and whether the deal gives ON Semiconductor enough scale in automotive, industrial and edge-device chips to justify the premium.

The broader bet is that combining ON’s power and sensing businesses with Synaptics’ interface, connectivity and AI-related products will help the company compete more effectively as AI moves into physical products and industrial systems.