Let’s make a deal, Analog Devices to acquire Alif Semiconductor for $1.35 billion

Analog Devices, Inc. (ADI) announced an agreement to acquire Alif Semiconductor in an all-cash transaction valued at $1.35 billion, with an additional contingent consideration of up to $200 million.

Alif Semiconductor, headquartered in Pleasanton, California, develops AI-native microcontrollers and fusion processors featuring heterogeneous architecture designed for real-time sensor fusion, low-latency inference, and on-device AI processing.

According to the announcement, the deal is intended to expand ADI’s capabilities in edge computing by combining its analog sensing, signal processing, and connectivity portfolio with Alif’s digital processing platform. ADI describes the combined offering as supporting what it calls “Physical Intelligence,” referring to systems that process real-world signals locally under power, latency, and reliability constraints.