Texas Instruments today announced that it will acquire National Semiconductor for about US$6.5 billion. The deal will make TI the third largest semiconductor maker in the world.
“This acquisition is about strength and growth,” said Rich Templeton, TI’s chairman, president and chief executive officer. “National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth.”
TI will add some 12,000 National analog products, including its power management chips, to its own catalog of 30,000 products. It will also benefits from National’s chip factories, giving it the ability to increase production.
The transaction has been approved by the boards of directors of both companies. The deal should close in six to nine months, pending regulatory approval.
The analog chip market is quite fragmented and the move may presage additional consolidation.