STMicroelectronics  is strengthening its global sensors capabilities with the planned acquisition of NXP Semiconductors’ MEMS sensors business, focused on automotive safety products as well as sensors for industrial applications.

The business to be acquired generated about $300 million in revenues in 2024 with gross and operating margin both significantly accretive for ST.

STMicroelectronics and NXP have entered into a definitive transaction agreement for a purchase price of up to US$950 million in cash, including US$900 million upfront and US$50 million subject to the achievement of technical milestones.

The transaction which will be financed with existing liquidity is subject to customary closing conditions, including regulatory approvals, and is expected to close in H1 2026.

The transaction will complement and expand ST’s leading MEMS sensors technology and product portfolio. It will unlock new opportunities for development across automotive, industrial and consumer applications.

“The planned acquisition is a great strategic fit for ST,” says Marco Cassis, president, Analog, Power & Discrete, MEMS and Sensors Group of STMicroelectronics. 

“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.”

“NXP is a leading supplier of automotive MEMS based motion and pressure sensors, with a long history of strong customer adoption,” adds Jens Hinrichsen, EVP and GM, Analog and Automotive Embedded Systems of NXP. “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,” Hinrichsen notes. “We are gratified that the MEMS sensor team will have an excellent home and long-term future at ST.”

The MEMS sensors portfolio to be acquired by ST primarily targets automotive safety sensors, both passive (airbags) and active (vehicle dynamics), as well as monitoring sensors (TPMS, engine management, convenience, and security).

It also includes pressure sensors and accelerometers for industrial applications. ST is well-positioned to leverage strong, established customer relationships with automotive Tier1s with its innovation roadmap in a rapidly expanding MEMS automotive market.