STMicroelectronics to Acquire NXP's MEMS Sensor Business for Up to $950 Million

On July 25, 2025, STMicroelectronics (ST) officially announced that it has reached an agreement to acquire NXP Semiconductors' MEMS sensor business for up to $950 million in cash. This acquisition aims to enhance and expand ST's MEMS sensor technology product portfolio, further solidifying its position as a global leader in sensors. The MEMS sensor product portfolio targeted by ST primarily focuses on automotive safety sensors, which include passive safety features such as airbags and active safety features such as vehicle dynamics control, as well as monitoring sensors including tire pressure monitoring systems (TPMS), engine management, convenience features, and information security. It also includes pressure sensors and accelerometers for industrial applications. ST believes that the growth rate of MEMS inertial sensors for automotive applications is expected to surpass that of the overall MEMS market. The business being acquired is projected to generate approximately $300 million in revenue in 2024, with significant benefits to ST in terms of gross margin and operating profit margin, and is expected to increase ST's earnings per share post-acquisition. This acquisition plan will enhance ST's MEMS technology, product development capabilities, and roadmap, acquiring cutting-edge intellectual property, technology, products, and a high-quality R&D team in automotive safety applications. The expanded business will also benefit from ST's MEMS IDM model, covering every stage of MEMS development from design, manufacturing to packaging and testing, enabling faster innovation cycles and stronger customization flexibility. In the future, ST aims to deepen its relationships with Tier 1 automotive suppliers in the rapidly expanding automotive MEMS market through its innovative roadmap, driving advancements in automotive safety, electrification, automation, and vehicle connectivity, paving the way for future revenue growth. As of now, both parties have signed a final transaction agreement, with a purchase price of up to $950 million in cash, including a $900 million upfront payment and a $50 million technology milestone bonus. The transaction will be funded from existing liquidity and is subject to customary closing conditions, including regulatory approvals, with completion expected in the first half of 2026.