STMicroelectronics acquires NXP's MEMS sensor business for $950 million, further strengthening its p
STMicroelectronics and NXP have reached an agreement to acquire NXP's MEMS sensor business for up to $950 million in cash, including a $900 million upfront payment and a remaining $50 million payable upon technical qualification. The ST and NXP MEMS businesses are highly complementary in terms of technology and product portfolios, and the combined product line will be well-balanced across automotive, industrial, and consumer end markets. NXP's MEMS business is expected to generate approximately $300 million in revenue in 2024, significantly accreting ST's gross and operating margins. The all-cash transaction will utilize existing liquidity and is expected to be accretive to ST's earnings per share upon completion. STMicroelectronics (NYSE: STM), a leading global semiconductor company serving a wide range of electronics applications, announced its intention to acquire the MEMS sensor business of NXP Semiconductors (NASDAQ: NXPI), further strengthening its position as a global sensor leader. The NXP business to be acquired focuses on automotive safety products and sensors for industrial applications. This move will complement and expand STMicroelectronics' MEMS sensor technology portfolio, unlocking new opportunities in automotive, industrial, and consumer applications.
Marco Cassis, President of STMicroelectronics' Analog, Power & Discretes, MEMS & Sensors (APMS) Division, said, "This acquisition is a strong strategic fit with STMicroelectronics. Combined with ST's existing MEMS portfolio, these complementary technologies, focused on automotive safety and industrial technologies, and customer relationships will strengthen our sensor position in key areas such as automotive, industrial, and consumer applications. Through our integrated manufacturing (IDM) model, which combines R&D, product design, and advanced manufacturing, we will be able to better serve our global customers."
"NXP is a leading supplier of automotive MEMS motion and pressure sensors and has long been a favorite of our customers," said Jens Hinrichsen, Executive Vice President and General Manager of Analog and Automotive Embedded Systems at NXP. "However, after careful evaluation, we believe this business does not align with the company's long-term strategic direction. We agree with STMicroelectronics that this product line is a perfect fit within STMicroelectronics' product portfolio, manufacturing footprint, and strategic plan. We are also pleased to see a good home and long-term future for NXP's MEMS sensor team at STMicroelectronics."
STMicroelectronics' proposed acquisition of the MEMS sensor portfolio focuses on automotive safety sensors (including passive safety, such as airbags, and active safety, such as vehicle dynamics control), as well as monitoring sensors (Tire Pressure Monitoring System (TPMS), engine management, convenience features, and security), and also includes pressure sensors and accelerometers for industrial applications. STMicroelectronics will leverage its innovation roadmap to deepen customer relationships with automotive Tier 1 suppliers in the rapidly expanding automotive MEMS market, using MEMS technology to drive advanced features such as safety, electrification and automation, and vehicle connectivity, paving the way for future revenue growth.
Automotive MEMS inertial sensors are expected to grow faster than the overall MEMS market. The proposed acquisition will generate approximately $300 million in revenue in 2024, with significant accretion to STMicroelectronics' gross and operating margins. Upon completion, the acquisition is expected to be accretive to ST's earnings per share.
The proposed acquisition will enhance STMicroelectronics' MEMS technology, product development capabilities, and roadmap, providing access to cutting-edge intellectual property, technologies, products, and a highly skilled R&D team for automotive safety applications. The expanded business will also benefit from ST's MEMS IDM model, which covers every stage of MEMS development, from design and manufacturing to packaging and testing, enabling faster innovation cycles and greater customization flexibility.
STMicroelectronics and NXP have signed a definitive transaction agreement for a purchase price of up to $950 million in cash, including a $900 million upfront payment and $50 million in technical achievement incentives. The transaction will be funded from existing liquidity and is subject to customary closing conditions, including regulatory approvals. Closing is expected in the first half of 2026.
