Texas Instruments in advanced talks to buy Silicon Laboratories for about $7 billion - report

Texas Instruments TXN.O is in advanced talks to buy chip designer Silicon Laboratories SLAB.O for about $7 billion, a source familiar with the matter told Reuters on Tuesday.

A deal could be announced in the coming days, the source said.

Shares of Silicon Laboratories, which has a market value of about $4.71 billion, surged about 34% in extended trading after the Financial Times newspaper first reported the news. Texas Instruments shares were down 2.4%.

Texas Instruments and Silicon Laboratories did not immediately respond to Reuters' requests for comment.

The potential deal comes as chipmakers benefit from a surge in demand from technology companies ramping up compute infrastructure to power their AI ambitions.

Terms of the deal were not immediately clear and the talks could still fall apart, the source added.

-Milana Vinn/Reuters