Microchip to Acquire Edge AI Chipmaker Hailo

Chandler-based Microchip Technology is expanding its artificial intelligence capabilities with an agreement to acquire Hailo, an Israeli semiconductor company specializing in processors for AI applications at the edge.

The terms of the transaction were not disclosed. The acquisition is expected to close near the end of the quarter ending September 30, subject to regulatory approvals and customary closing conditions.

Hailo develops edge AI processors, vision systems-on-chip and supporting AI software designed to run AI workloads directly on devices rather than relying entirely on cloud infrastructure. Its technology is used across applications including robotics, drones, smart cameras and industrial automation.

The acquisition adds products including the Hailo-8, Hailo-10 and Hailo-15 to Microchip's existing embedded technology portfolio, which spans FPGA, connectivity, security, power and analog technologies.

For Microchip, the transaction expands its ability to provide the computing infrastructure behind intelligent edge devices.

Hailo also brings an established customer and developer base. The company has more than 100 customers and a developer community exceeding 10,000 users, along with connections to the Raspberry Pi ecosystem.

Microchip Senior Corporate Vice President Mark Reiten said the acquisition accelerates the company's expansion into high-performance edge AI processing and complements its existing technology portfolio.

The deal also reflects a broader shift within the semiconductor industry. As AI expands beyond large data centers, chipmakers are increasingly positioning themselves for inference at the edge—where AI models operate directly inside cameras, robots, vehicles, industrial equipment and other connected devices.

For Arizona, the acquisition adds another AI-focused capability to one of the state's established semiconductor companies and further connects the region's semiconductor presence with the expanding market for artificial intelligence hardware.