Geneva’s STMicroelectronics snaps up NXP’s MEMS sensors unit in €808 million all-cash deal

Swiss semiconductor developer STMicroelectronics (ST) is making a substantial stride in its sensor technology portfolio through the planned acquisition of NXP Semiconductors’ MEMS sensors business, currently based in Eindhoven.

The €808 million all-cash deal – comprised of €766 million upfront and €42 million tied to technical milestones – will allow ST to deepen its foothold in high-growth areas such as automotive safety, industrial automation, and consumer sensing 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.”

Founded in 1987, STMicroelectronics is an innovator in the semiconductor industry, known for its vertically integrated model that covers the entire manufacturing cycle – from design and prototyping to production and packaging. With more than 50,000 employees and operations spanning multiple continents, ST’s sensors are embedded across automotive, industrial and consumer electronics.

Founded in 2006, NXP Semiconductors is a trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. The company has operations in more than 30 countries and posted revenue of €10.7 billion in 2024.

The target business includes MEMS sensors that serve critical roles in vehicle safety, such as airbag systems and vehicle dynamics, in addition to a broader suite of industrial monitoring solutions. With these additions, ST expects to significantly enhance its innovation pipeline and R&D capabilities. The acquired unit generated approximately €255 million in revenue in 2024, with margins that are described as immediately accretive to both gross and operating income, as well as earnings per share.

This strategic acquisition reinforces ST’s ambitions to expand its sensor leadership across these verticals. The transaction is expected to be finalised in the first half of 2026, pending customary regulatory approvals.

“NXP is a leading supplier of automotive MEMS based motion and pressure sensors, with a long history of strong customer adoption,” said Jens Hinrichsen, Executive Vice President and General Manager, 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. We are gratified that the MEMS sensor team will have an excellent home and long-term future at ST,” he added.

With global demand rising for advanced safety and automation technologies – particularly as electric and autonomous vehicle markets evolve – the MEMS sensors market is becoming increasingly critical. STMicroelectronics is now positioning itself to capitalise on this trend, reinforcing its partnerships with automotive Tier1 suppliers and ramping up development of next-generation pressure sensors, accelerometers and inertial units.

Once the deal closes, the acquired R&D teams and intellectual property will be integrated into ST’s global innovation framework. The company plans to deploy its Integrated Device Manufacturer model to accelerate the rollout of new solutions and tailor designs more efficiently to customer specifications, aiming to give it a significant advantage in time-to-market and flexibility.

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