Analog silicon carbide chip maker onsemi, used in the automotive and industrial markets, has decided to acquire Synaptics in an all-share deal worth about $7 billion.

On June 26, local time, SiliconANGLE reported that Synaptics shareholders will receive 1.35 onsemi shares for each Synaptics share they hold.

onsemi plans to use the acquisition to accelerate expansion of its physical AI and edge AI businesses. It plans to combine Synaptics connectivity technology and software platforms with its own semiconductors to meet demand for intelligent systems.

The acquisition is expected to be completed in mid-2027 after regulatory approval.

onsemi has strengths in power semiconductors and sensing devices, but it has not benefited much so far from the spread of cloud-focused AI. In this context, onsemi sees edge AI, which performs computation within devices, as a new growth opportunity.

Synaptics has developed laptop touchpads, touchscreen technology, display drivers, human presence detectors, smartphone fingerprint biometric scanners, and imaging and far-field voice technologies for vehicles and smart homes. onsemi said it expects Synaptics technology can be used in physical AI areas such as robots, drones and autonomous vehicles.