04:58 AM

Texas Instruments To Buy Historic Silicon Valley Chipmaker Nat Semi

Texas Instruments has agreed to acquire National Semiconductor for $6.5 billion in cash - a 77% premium.

National Semiconductor is one of the oldest Silicon Valley tech companies, founded in 1959.

National Semiconductor History - Celebrating 50 Years - 1959 to 2009

Nat Semi specializes in analog chips - these are different from digital chips and are more difficult to design and make than digital chips. It's considered a bit of a "black art" and analog chip designers have some of the highest salaries in the industry.

Anlog chips are essential components for all consumer and communications electronics products.

Texas Instruments to Buy National Semiconductor for $25 a Share - Bloomberg