Analog Devices (ADI) has completed its US$1.35 billion acquisition of Alif Semiconductor.

The deal brings together ADI’s sensing, signal processing, power, connectivity, and software capabilities, and Alif’s AI-native microcontrollers and fusion processors. It expands ADI’s addressable market and speeds product development for industrial systems, data centres, defence, energy, robotics, digital health, and wearables.

Alif’s technology lets devices understand real-world signals, reason and act locally while meeting demanding requirements for power, latency, security and reliability. It is a physical intelligence where computing happens close to the source of data rather than relying entirely on remote systems.

The acquisition follows ADI’s broader strategy of connecting the physical and digital worlds at the intelligent edge.

“For decades, ADI has helped customers solve their most complex system-level challenges through deep domain expertise and a cutting-edge technology portfolio spanning the physical-digital boundary. Alif’s AI-native platform builds on that foundation, advancing systems that can understand real-world signals, reason and act locally within demanding power, latency, security and reliability constraints. This is physical intelligence in action,” said Vincent Roche, CEO and Chair of ADI.