US-based semiconductor company Analog Devices (ADI) has reached an agreement to acquire Alif Semiconductor in an all-cash transaction valued at $1.35bn.
The deal is expected to strengthen Analog Devices’ position in providing hardware for AI applications in real-world systems.
The agreement also entails a potential additional payment of up to $200m, depending on certain undisclosed conditions.
Based in California, Alif Semiconductor currently supplies silicon to a range of consumer and industrial customers, with its products already shipping in production.
The company has developed a platform of AI-native microcontrollers and fusion processors, featuring a heterogeneous architecture designed to enable real-time sensor fusion, low-latency inference, and on-device AI processing.
Alif Semiconductor co-founder and president Reza Kazerounian said: “Alif was founded to reimagine what a microcontroller can be in the AI era. We engineered a heterogeneous architecture from the start, integrating dedicated low-power neural processing with connectivity, security, and intelligent power management that delivers compute resources precisely where they’re needed.
“Combined with ADI’s deep physical-domain expertise and broad analog system capabilities, we can expand our reach to deliver the solutions that can power the future of Physical Intelligence.”
Through the acquisition, Analog Devices aims to address an expanded range of applications, including industrial, defence, data centre infrastructure, digital health, robotics, energy, and wearable devices. It plans to achieve this by combining its sensor, power, and software capabilities with Alif Semiconductor’s AI-native processing platform.
Analog Devices CEO and chair Vincent Roche said: “By combining Alif’s digital processing capabilities with our leadership in multi-modal sensing, signal processing, power, connectivity, and software, we can empower customers to create entirely new classes of secure, intelligent systems that sense, reason, and act locally in real time.
“This is the next frontier of AI: embodied and deterministic. This is Physical Intelligence in action.”
The companies anticipate the transaction will be completed by the end of this year, pending customary closing conditions and regulatory approvals. This includes the expiration of any applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act.
In May, Analog Devices announced to acquire Empower Semiconductor, a Silicon Valley company, in a cash deal valued at approximately $1.5bn. Analog Devices completed the acquisition in July 2026.
