Microchip Technology to acquire edge AI chip firm Hailo

Microchip Technology Incorporated (NASDAQ: MCHP) has signed a definitive agreement to acquire Hailo, a provider of edge AI processors and vision processing solutions, the company said in a statement.

The transaction is expected to close by September 30, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed. Microchip said the deal is not expected to have a material impact on its financial results.

Hailo's product portfolio includes the Hailo-8, Hailo-10 and Hailo-15 chips, which span edge AI accelerators and vision systems-on-chip. The company counts more than 100 customers and an established developer community of more than 10,000 users. Its products support workloads including CNNs, transformers, LLM and VLM workloads, image signal processing, and AI video stream processing.

Microchip said the acquisition is intended to expand its processing portfolio for intelligent edge systems, covering applications such as robotics, drones, smart cameras, industrial automation and embedded AI systems.

"The acquisition of Hailo accelerates Microchip's expansion into high-performance edge AI processing," said Mark Reiten, Senior Corporate Vice President at Microchip. "Hailo's AI acceleration, advanced vision processing and software ecosystem directly complements Microchip's embedded processing, FPGA, connectivity, security, power and analog portfolio."

Hailo CEO Orr Danon said joining Microchip would provide an opportunity to scale its technology through a broader customer and channel network. "Microchip's customer reach, channel scale and broad technology portfolio would create a strong platform for bringing advanced vision processing and AI acceleration to broader range of intelligent edge applications," Danon said.

The deal follows Microchip's earlier acquisition of Neuronix AI Labs, which added neural network optimization technology for AI and machine learning workloads on FPGAs and SoCs.

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