STMicroelectronics Acquires NXP’s MEMS Sensor Business for $950 Million to Boost Automotive and Industrial Markets, ETTelecom

NEW DELHI: STMicroelectronics on Thursday said it has agreed to acquire NXP Semiconductors’ MEMS (micro-electromechanical systems) sensors business for $950 million to tap the automotive safety and industrial applications markets.

Under the agreement, STMicroelectronics will pay $900 million upfront and $50 million upon the achievement of technical milestones. The transaction is expected to close in H1 2026, subject to necessary regulatory approvals and conditions.

The MEMS sensors business generated $300 million in revenues in 2024 for NXP, with gross and operating margins significantly accretive for STMicroelectronics. It is also expected to be accretive to STMicroelectronics’ Earnings Per Share (EPS) from completion.

NXP’s MEMS sensors portfolio primarily targets automotive safety sensors, both passive (airbags) and active (vehicle dynamics), as well as monitoring sensors, such as tyre pressure monitoring system (TPMS), engine management, convenience, and security. It also includes pressure sensors and accelerometers for industrial applications.

STMicroelectronics, in a joint statement, said the acquisition will enhance its MEMS technology, product R&D capabilities and roadmap, with IP, technology and products for automotive safety applications and highly skilled R&D teams.

The announcement comes at a time when automobile original equipment manufacturers (OEMs) are leveraging MEMS technologies to enable advanced functionalities for safety, electrification, automation, and connected features, which STMicroelectronics expects will drive its future revenue growth.

‘The planned acquisition is a great strategic fit for ST,’ said Marco Cassis, president (analog, power & discrete), MEMS and sensors group, STMicroelectronics. ‘By leveraging our IDM model, with technology R&D, product design and advanced manufacturing, we will better serve all our customers worldwide.’

‘After careful portfolio review the company has decided the business does not fit into its long-term strategic direction. We have agreed with STMicroelectronics that the product line will fit ideally into ST’s portfolio, manufacturing footprint and strategic roadmap,’ said Jens Hinrichsen, executive vice president and general manager (analog and automotive embedded systems), NXP.

• Published On Jul 25, 2025 at 08:36 AM IST

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