Microchip Technology Signs Definitive Agreement to Acquire Hailo

Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that it has signed a definitive agreement to acquire Hailo, a provider of accelerated edge AI processors, advanced vision processing solutions, robotics processors and comprehensive AI software flows. The transaction is expected to close towards the end of the current quarter ending September 30, subject to customary closing conditions and regulatory approvals. The terms of the transaction are not being disclosed and the transaction is not expected to have a material impact on Microchip’s financial results.

The proposed acquisition is expected to expand Microchip’s processing portfolio for intelligent edge systems and strengthen its ability to deliver accelerated, power-efficient edge AI solutions for robotics, advanced vision processing and intelligent edge applications, including drones, robots, smart cameras, industrial automation and embedded AI systems.

Hailo has demonstrated technology leadership across both edge AI accelerators and vision systems on chip. Its products span from high performance edge deployments on specialty edge servers with local GenAI and multimodal workloads down to low-power vision processing inside a small form factor, stand-alone camera. With Hailo-8, Hailo-10 and Hailo-15, Microchip will gain a portfolio that supports classic computer vision, while adding advanced camera, ISP, DSP, video encoding and AI video stream processing capabilities for intelligent edge systems.

The Hailo acquisition brings multiple products, more than 100 current customers and an established developer community of more than 10,000 users. Its portfolio spans both edge AI accelerators and vision SoCs supporting workloads and capabilities including CNNs, transformers, LLM/VLM workloads, Image Signal Processing, DSP, H.264/H.265 encoding and AI video stream processing.

“The acquisition of Hailo accelerates Microchip’s expansion into high-performance edge AI processing,” said Mark Reiten, Senior Corporate Vice President. “Hailo’s AI acceleration, advanced vision processing and software ecosystem directly complements Microchip’s embedded processing, FPGA, connectivity, security, power and analog portfolio. Together, we can help customers build more capable intelligent edge systems with the right balance of performance, power efficiency, reliability and system cost.”

The transaction would also bring a demand-generation engine for edge AI adoption. Hailo’s Raspberry Pi ecosystem, gated Developer Zone, GitHub activity and community forum create a self-sustaining funnel that converts developer engagement into qualified opportunities and customer pipeline.

“Joining Microchip would give Hailo the opportunity to scale our accelerated edge AI technology through a global embedded systems leader,” said Hailo CEO Orr Danon. “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.”

The agreement builds on Microchip’s strategy to enable power-efficient AI at the edge. Microchip previously expanded its AI capabilities with the acquisition of Neuronix AI Labs, which added neural network optimization technology for AI/ML workloads on FPGAs and SoCs. This transaction adds dedicated edge AI processors, vision SoCs and software tools to Microchip’s portfolio that broaden its ability to support accelerated AI and advanced vision processing at the edge.