September 10, 2026 / SemiMedia / — Analog Devices has entered into a definitive agreement to acquire Alif Semiconductor for $1.35 billion in cash, expanding its on-device AI processing capabilities across industrial, robotics, digital health and other edge applications.

Under the agreement, ADI will pay $1.35 billion in upfront cash consideration and may provide up to an additional $200 million in contingent payments. The transaction is expected to close before the end of 2026, subject to customary closing conditions.

Pleasanton, California-based Alif develops highly power-efficient Edge AI microcontrollers and fusion processors that integrate AI and machine learning acceleration with sensor fusion, connectivity, security and power management. Its chips are already shipping in production, with design wins across consumer and industrial customers.

ADI said the acquisition will combine Alif's digital processing and on-device AI capabilities with its existing strengths in sensing, signal processing, power, connectivity and software, enabling customers to build systems that can sense, analyze and respond locally in real time.

As AI moves beyond cloud and data center infrastructure into robotics, industrial automation, healthcare devices and wearables, demand is increasing for low-power local inference and real-time processing. ADI expects Alif's platform to expand its ability to address these physical AI applications.

PJT Partners is serving as financial advisor to ADI, while Qatalyst Partners is advising Alif Semiconductor on the transaction.