CHANDLER, Arizona — Microchip Technology on Wednesday outlined how it will integrate Hailo Technologies' neural-network accelerators with its microcontrollers and FPGAs for edge AI workloads. The company completed the acquisition on Monday.

Microchip, a supplier of microcontrollers and analog chips, announced the deal's closing earlier this week without disclosing financial terms. Hailo, founded in Tel Aviv, builds low-power inference processors used in cameras, industrial equipment and automotive systems. The purchase gives Microchip a dedicated edge AI accelerator line to counter rivals such as NXP and STMicroelectronics.

The combined roadmap will target industrial automation, automotive and defense customers already served by Microchip's embedded portfolio, according to the company. Hailo's technology complements Microchip's existing 32-bit microcontrollers, enabling on-device inference without cloud connectivity.

The move reflects intensifying competition among semiconductor firms to embed AI processing at the edge, where power and cost constraints favor specialized silicon over general-purpose GPUs. Analysts tracking the embedded market have noted that edge inference is becoming a required feature for industrial and automotive design wins.

Microchip has been recovering from an inventory correction that hit the broader microcontroller sector through 2024 and 2025. Company executives have identified the Hailo integration as central to restoring growth by differentiating its embedded products with built-in AI capability.