Acquisition STMicroelectronics Acquires MEMS Sensor Division from NXP

From Susanne Braun | Translated by AI 1 min Reading Time

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STMicroelectronics (ST) plans to spend nearly one billion US dollars for the MEMS sensor division of semiconductor manufacturer NXP. The transaction is expected to complement ST's product portfolio and open up new development opportunities in the automotive and industrial sectors.

The manufacturing of STMicroelectronics at the Agrate R3 fab in Italy.(Image: STMicroelectronics)
The manufacturing of STMicroelectronics at the Agrate R3 fab in Italy.
(Image: STMicroelectronics)

The executives of semiconductor company STMicroelectronics (ST) have announced their intention to acquire the MEMS sensor division of competitor NXP Semiconductors for $950 million. This transaction is seen as strategically highly suitable, as it meaningfully complements the existing MEMS portfolio. Additionally, it creates new development opportunities in the fields of automotive, industrial, and consumer electronics, explains Marco Cassis, President of the Analog, Power & Discrete, MEMS and Sensors Group at ST.

At NXP, however, it was decided after evaluating the business that the division of MEMS-based motion and pressure sensors for automotive does not align with the company's long-term strategy. "We have agreed with STMicroelectronics that the product line fits perfectly with ST's portfolio, manufacturing presence, and strategy. We are pleased that the MEMS sensor team will have an excellent home and a long-term future at ST," explains Jens Hinrichsen, Executive Vice President and General Manager, Analog and Automotive Embedded Systems at NXP.

ST acquires a MEMS sensor portfolio primarily aimed at vehicle safety, such as passive systems (e.g., airbags) and active systems (e.g., driving dynamics), as well as monitoring sensors like tire pressure monitoring (TPMS), engine control, and comfort and safety features. Additionally, the package includes pressure sensors and accelerometers for industrial applications.

STMicroelectronics and NXP have reached a binding agreement for the acquisition. The purchase price amounts to up to $950 million in cash, with $900 million due immediately and an additional $50 million tied to the achievement of certain technical milestones. The financing will come from existing cash reserves. The completion of the transaction is still subject to regulatory approvals and is expected in the first half of 2026.  (sb)

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