Analogue chip manufacturer Maxim Integrated Products is to buy Dallas Semiconductor for around $2.5bn.
The deal comes just two months after Vin Prothro, Dallas' president, CEO and chairman, died of a heart attack.
Jack Gifford, Maxim's chief executive, said: "Dallas Semiconductor has many product lines that are complementary to Maxim's and we look forward to giving more visibility to Dallas Semiconductor's excellent digital and mixed-signal circuits in both the domestic and the international marketplaces."
He added that there were no plans to reduce the workforce after the purchase is completed as the two companies complement each other without any significant overlap in operations.
"We believe that the cultures of the two companies are closely aligned in their focus on product proliferation and engineering innovation," said Gifford.
Chao Mai, a Dallas founder who stepped in as president and chief operating officer after Protho's death, agreed: "After careful deliberation, emphasising leadership, engineering, culture and product line fit, we chose Maxim as the right partner."
Dallas makes a wide range of speciality silicon including chips for battery power management in handheld devices and mobile phones.