Feb 3 (Reuters) - Texas Instruments (TXN.O) is in advanced talks to buy chip designer Silicon Laboratories (SLAB.O) for about $7 billion, the Financial Times reported on Tuesday.
A deal between the two companies could be announced in the coming days, the newspaper said, citing people familiar with the matter.
Shares of Silicon Laboratories, which has a market capitalization of about $4.71 billion, surged 28% after the bell following the report, while Texas Instruments shares were down 1%.
Reuters could not immediately verify the report. 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.
The exact terms of the potential tie-up were not immediately clear, and it was possible that the timeline would slip or talks fall apart, the report added.

FTXL

SOXX

SLAB

SOXL

Reuters

VanEck Semiconductor ETF

Invesco Semiconductors ETF

First Trust Nasdaq Food & Semicon

iShares Semiconductor ETF

Texas Instruments

Silicon Labs

SPDR S&P Semicon

Direxion Semicon Bull 3X

Texas Instruments in advanced talks to buy Silicon Laboratories for about $7 billion, FT reports