China to Launch Phase 2 Review of Texas Instruments-Silicon Labs Deal

Key Facts

1Silicon Labs shares edged lower following reports that its acquisition by Texas Instruments will enter a Phase 2 regulatory review in China.

Amid escalating regulatory scrutiny in the global semiconductor industry, the acquisition of Silicon Labs by Texas Instruments is facing new hurdles in Asian markets. According to reports, China's antitrust regulator is expected to move the $7.5 billion deal into a Phase 2 review as early as this month. This development caused Silicon Labs shares to edge lower as investors weigh the increased risks and potential delays in the merger's completion.

The move highlights the rigorous approach Chinese regulators take when assessing mega-mergers in the chip sector to evaluate domestic market impacts. Per market data, Texas Instruments (TXN) closed at $261.59 on September 9, 2026, trading within a range of $256.35 to $262.74 during that session. Arbitrageurs are closely monitoring whether this extended regulatory timeline will impact the deal's final valuation or closure probability.

Looking ahead, market participants are awaiting official confirmation from Chinese authorities regarding the duration of the in-depth review. With TXN shares positioned at $261.59 (close of September 9, 2026), focus remains on broader trade dynamics, especially following Chinese trade balance data from September 8 which showed a 25% year-on-year increase in exports, underscoring the critical nature of the Chinese market for US semiconductor firms.