Analog Devices agreed to acquire privately held Alif Semiconductor for $1.35 billion in cash, with up to $200 million in contingent payments. The transaction adds Alif’s low-power, AI-native microcontrollers and fusion processors to Analog Devices’ portfolio as the chipmaker targets artificial intelligence processing directly on devices. Alif’s chips combine neural processing, sensor data, connectivity, security and power management, and are already shipping in production with design wins among consumer and industrial customers. The deal is expected to close before the end of the calendar year, subject to customary closing conditions. It follows Analog Devices’ $1.5 billion acquisition of Empower Semiconductor and its purchase of Vizor Technology for an undisclosed amount. Analog Devices shares closed up 0.3% on Wednesday and have gained about 34% this year, while retail sentiment on Stocktwits remained bearish.