STMicroelectronics to Acquire NXP MEMS Sensors Business

STMicroelectronics has announced plans to acquire the MEMS sensors business of NXP Semiconductors in an all-cash transaction valued at up to $950 million. The deal includes an upfront payment of $900 million and an additional $50 million contingent on achieving specific technical milestones. The acquisition is expected to strengthen ST’s global position in the MEMS sensor market, particularly in automotive and industrial applications.

The two companies’ portfolios are highly complementary in both technology and application scope. NXP’s MEMS sensor business focuses on automotive safety systems—both passive (airbags) and active (vehicle dynamics)—along with monitoring solutions for TPMS (tire pressure monitoring systems), engine management, convenience features, and vehicle security. The offering also includes pressure sensors and accelerometers for industrial markets.

ST intends to leverage these technologies to serve a broader customer base across automotive, industrial, and consumer applications. The acquisition is expected to enhance ST’s capabilities in safety, electrification, automation, and connectivity as demand for MEMS-based sensing expands in next-generation vehicle platforms.

“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,” 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.”

The MEMS business to be acquired generated approximately $300 million in revenue in 2024 and delivered gross and operating margins that are significantly accretive. The deal is expected to be accretive to ST’s earnings per share from the time of completion. ST is well-positioned to scale the business through established Tier 1 automotive relationships and roadmap alignment in safety and electrification systems.

The acquisition will expand ST’s technology base with new intellectual property, skilled engineering teams, and system-level capabilities for automotive MEMS. The company will apply its Integrated Device Manufacturer (IDM) model—spanning design, advanced manufacturing, packaging, and testing—to accelerate product innovation and deliver greater flexibility in customization.

STMicroelectronics and NXP have signed a definitive agreement for the transaction, which remains subject to customary closing conditions and regulatory approvals. The deal is expected to close in the first half of 2026 and will be funded from ST’s existing liquidity.

About STMicroelectronics

Headquartered in Geneva, Switzerland, STMicroelectronics is a global expert in the design, manufacturing, and supply of semiconductor technologies. The company serves customers in the automotive, industrial, and consumer electronics markets, offering products that span MEMS sensors, microcontrollers, power electronics, and wireless connectivity. ST’s Integrated Device Manufacturer (IDM) model supports all stages of semiconductor development, from research and design through to production and packaging.

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Source/Photo Credit: STMicroelectronics

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