Synaptics (SYNA) is accelerating its business expansion and technological advancement centered on edge AI, restructuring its core growth pillars around edge AI and the Internet of Things (IoT). The company is pursuing a comprehensive strategy spanning autonomous drones, developer platforms, and next-generation Wi-Fi chips.
Edge AI partnerships and platforms
Synaptics signed a memorandum of understanding (MoU) with Actron, GallopWave, and Hitech to collaborate on edge AI and navigation technology for autonomous unmanned aerial vehicles (UAVs). The partnership covers computing, connectivity, navigation software, and system integration, with potential applications in search and rescue, logistics delivery, and wildlife conservation. However, no specific commercial contracts have been finalized yet.
In collaboration with Google Research, Synaptics plans to unveil an immersive on-device AI experience at Google I/O 2026 using a new edge AI development platform based on the Coral board. The platform combines Synaptics' Astra SL2619 SoC and Torq NPU with Google's Coral NPU technology, achieving always-on operation and low power consumption. The Coral Dev board for developers is already available, supporting multimodal AI applications with Gemma models and an open-source toolchain.
Product expansion and financial performance
Synaptics introduced the 'SYN765x', a single-chip Wi-Fi 7 solution targeting smart home appliances and industrial IoT. The chip integrates Bluetooth LE 6.0, Thread/Zigbee, NPU, and sensor functions, reducing costs by up to 25% and enabling compact designs. Additionally, the Astra SR80 and SRW1500 series microcontrollers have been added to target premium audio and distributed edge intelligence markets.
For the third quarter of fiscal 2026, Synaptics reported revenue of $294.2 million, up 10% year-over-year, with core IoT product revenue growing 31%. Non-GAAP net income was $44.1 million, indicating stable profitability. The company forecasts annual IoT revenue exceeding $385 million, driven by increased design wins in physical AI and edge AI.
Market engagement and outlook
Synaptics has paused conference calls and forward guidance for the fourth quarter and full fiscal year due to an ongoing transaction with onsemi, which may create a communication gap with investors. Meanwhile, CEO Rahul Patel and CFO Ken Rizvi have been presenting the edge AI strategy and growth outlook at major technology conferences hosted by JP Morgan, TD Cowen, and Mizuho.
Industry observers note that the shift toward on-device AI processing is accelerating, and Synaptics' integrated solution strategy could strengthen its long-term competitiveness. As demand grows to reduce cloud dependence and latency, the edge AI semiconductor market is expected to expand rapidly.