Microchip buys Israeli edge AI chipmaker Hailo

Contents

US semiconductor company Microchip Technology (Nasdaq: MCHP) has announced that it has signed a definitive agreement to acquire Israeli edge AI chipmaker Hailo. Microchip said, "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."

"Globes" revealed exclusively earlier this month that Hailo was set to be acquired for what in effect was a loss of hundreds of millions of dollars. Over the years, the company raised more than $350 million from investors including Zohar Zisapel, Rakefet Roussak-Aminoach, Idan Ofer and Gil Agmon, and achieved a valuation of more than $1 billion but is now being sold for a small amount. Other investors include Poalim Equity, OurCrowd, Shlomo Group, Carasso Motors, Automotive Equipment Group (Suzuki importer) and Telcar (Kia importer), as well as the Maniv Mobility Fund.

US chipmaker in advanced talks to buy Hailo

Hailo lays off 50% of workforce

Industry sources believe that Hailo CEO Or Danon will continue in his role and most of the company’s 110 employees will move to Microchip, which will set up a second development center in Israel, alongside its existing Israel development center based on the acquisition of PowerDsine in 2018 for $245 million. Halo has developed AI accelerators for chips embedded in end-user products, with an emphasis on computer vision - such as security cameras and vehicles - and was previously considered one of the most promising AI chip companies in Israel. The company has dozens of customers, most of them in East Asia and especially in China but has struggled to produce significant revenue.

Now, Microchip is interested in integrating Israeli technology into a variety of products such as drones, industrial robots and smart cameras. According to the buyer, it inherits from Hailo over 100 customers and a community of about 10,000 users. While Hailo brings with it its AI accelerators and signal processing technology for video and computer vision, Microchip brings to the table field-programmable gate arrays (FPGAs), inter-chip communication components, power management and data security.

Published by Globes, Israel business news - en.globes.co.il - on July 26, 2026.