STMicro acquires part of NXP Semiconductors’ sensor business for US$950 million
Purchase price consists of US$900 million up front, and US$50 million subject to the achievement of technical milestones
[SINGAPORE] STMicroelectronics (STMicro) has entered into an agreement to buy part of Dutch-based NXP Semiconductors’ sensor business for up to US$950 million.
The deal would expand STMicro’s portfolio of micro-electromechanical systems (Mems) sensors, which include automotive safety products as well as sensors for industrial applications.
In 2024, the NXP unit generated about US$300 million in revenue, with gross and operating margin both “significantly accretive” for STMicro. It is also expected to be accretive to the chipmaker’s earnings per share from completion, it said in a statement.
The Mems sensors portfolio to be acquired primarily targets automotive safety sensors – such as for airbags and vehicle dynamics – and monitoring sensors, such as for engine management. It also includes pressure sensors and accelerometers for industrial applications.
“STMicro is well-positioned to leverage strong, established customer relationships with automotive Tier 1s with its innovation road map in a rapidly expanding Mems automotive market,” it said.
The planned acquisition will enhance STMicro’s Mems technology, as well as product research and development capabilities and road map.
Once completed, the expanded business will take advantage of STMicro’s integrated device manufacturer model for Mems, enabling faster innovation cycles and greater flexibility for customisation.
The deal is for a purchase price of up to US$950 million in cash, including US$900 million up front and US$50 million subject to the achievement of technical milestones.
The transaction will be financed with existing liquidity and is expected to close in the first half of 2026.
Copyright SPH Media. All rights reserved.
