The pact, announced in a statement, is a $231.00 per share all-cash transaction expected to close in the first half of 2027.

Texas Instruments is known for specializing in analog semiconductors used for power management and signal processing in industrial and automotive goods, as well as in consumer electronics.

Silicon Labs' chips, meanwhile, go towards smart home devices among others.

Shares in Texas Instruments lost 3.9 percent in pre-market trading, while Silicon Labs surged by more than 51 percent before trading began on Wall Street.

"Silicon Labs' leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers," said Texas Instruments chairman Haviv Ilan in a statement.

The acquisition, he added, "strengthens our long-term embedded processing strategy."

The agreement's terms have been approved by the board of directors of both companies, but the transaction will still need to receive regulatory approvals and meet other conditions like the green light from Silicon Labs stockholders, the statement said.