Onsemi has agreed to acquire Synaptics in an all-stock deal valuing it at about $7 billion, betting on "physical AI" — artificial intelligence embedded in machines that sense and act in the real world. Onsemi and Synaptics said on June 25 they had signed a definitive agreement, with Synaptics shareholders receiving 1.350 Onsemi shares for each of their shares — roughly a 19% premium to the two stocks' recent average prices — leaving them with about 12% of the combined company. Both boards unanimously approved the transaction, Onsemi's largest to date, and one Synaptics board member is expected to join Onsemi's board. The deal is expected to close in mid-2027, pending Synaptics shareholder and regulatory approvals. Onsemi, strong in power semiconductors and image sensors, wants to combine those capabilities with Synaptics' wireless connectivity, Internet of Things, and edge AI strengths into what CEO Hassane El-Khoury called the four pillars of physical AI: Power, Sense, Connected Compute, and Control.