Switzerland’s semiconductor company STMicroelectronics has agreed to acquire Dutch-based NXP Semiconductors’ MEMS sensor business for a total purchase price of up to $950M (nearly €808.17M) in cash.
The agreement includes $900M (nearly €765.59M) payable at closing and $50M (nearly €42.53M) contingent on the achievement of technical milestones. The deal, funded through existing liquidity, is expected to close in the first half of 2026.
The acquisition targets sensors used in automotive safety and industrial applications. This move will add to STMicroelectronics’ existing MEMS sensors technology and product offerings, allowing for broader development in automotive, industrial, and consumer sectors.
Marco Cassis, President, Analog, Power & Discrete, MEMS and Sensors Group of STMicroelectronics, says, “The planned acquisition is a great strategic fit for ST. Together with ST’s existing MEMS portfolio, these highly complementary technologies and customer relationships, focused on automotive safety and industrial technologies, will strengthen our position in sensors across key segments in automotive, industrial and consumer applications.”
“By leveraging our IDM model, with technology R&D, product design and advanced manufacturing, we will better serve all our customers worldwide.”
Supplier of automotive MEMS
Eindhoven-based NXP Semiconductors is a company that provides solutions for the automotive, industrial and IoT, mobile, and communications infrastructure markets.
Its “Brighter Together” approach brings together technology and people to develop system solutions for the connected world. The company operates in over 30 countries and reported revenue of $12.61B in 2024.
Jens Hinrichsen, NXP’s Executive VP and GM, Analog and Automotive Embedded Systems, says, “NXP is a leading supplier of automotive MEMS-based motion and pressure sensors, with a long history of strong customer adoption. However, 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. We are gratified that the MEMS sensor team will have an excellent home and long-term future at ST.”
Aim of the acquisition
STMicroelectronics will acquire a MEMS sensors portfolio that includes products for automotive safety, such as passive systems like airbags and active systems like vehicle dynamics.
The portfolio also covers monitoring sensors, including tire pressure, engine management, convenience, and security, as well as pressure sensors and accelerometers for industrial uses.
ST plans to build on its customer relationships with automotive Tier 1 suppliers and align the acquisition with its development roadmap. MEMS technologies are being used in applications related to safety, electrification, automation, and connected vehicles, contributing to future revenue potential.
MEMS inertial sensors in the automotive sector are projected to grow faster than the overall MEMS market. The MEMS sensors business that STMicroelectronics plans to acquire generated approximately $300M in revenue in 2024.
The business delivered gross and operating margins that exceed ST’s current levels and is expected to contribute to ST’s earnings per share after completion.
The acquisition will expand ST’s MEMS technology and product development capabilities. It includes intellectual property, products, and research teams focused on automotive safety applications.
The business will operate within ST’s Integrated Device Manufacturer model, which covers design, manufacturing, testing, and packaging, supporting shorter development cycles and product customisation.
Brief about STMicroelectronics
STMicroelectronics employs 50,000 people and operates across the semiconductor supply chain with its own manufacturing facilities.
As an integrated device manufacturer, the company works with over 200,000 customers and thousands of partners to develop products, systems, and platforms that respond to various market demands. Its technologies are used in mobility, power and energy systems, and connected devices.
STMicroelectronics has set targets to become carbon neutral in direct and indirect emissions, including transportation and travel-related emissions, and aims to reach full renewable electricity sourcing by the end of 2027.
