STMicroelectronics to buy NXP’s MEMS sensors business

STMicroelectronics to buy NXP’s MEMS sensors business

STMicroelectronics (NYSE: STM) has announced its intention to acquire NXP Semiconductors' MEMS sensors business for up to $950 million in cash, including $900 million upfront and $50 million tied to technical milestones. The acquisition is expected to strengthen STMicroelectronics' position in the sensors market, particularly in automotive and industrial applications.

The MEMS sensors business acquired from NXP generated approximately $300 million in revenue in 2024, with significantly accretive margins. The portfolio includes automotive safety sensors, pressure sensors, and accelerometers for industrial applications. The transaction will leverage STMicroelectronics' Integrated Device Manufacturer (IDM) model, which encompasses technology R&D, product design, and advanced manufacturing.

The acquisition is anticipated to close in H1 2026, subject to regulatory approvals and customary closing conditions. The transaction will be financed through existing liquidity. This strategic move is expected to be immediately accretive to earnings per share, indicating confidence in minimal integration challenges.

STMicroelectronics' acquisition of NXP's MEMS sensors business represents a significant consolidation in the MEMS market. The deal is expected to enhance STMicroelectronics' MEMS technology, product R&D capabilities, and roadmap, particularly in automotive safety applications. The expanded business will take advantage of STMicroelectronics' IDM model, enabling faster innovation cycles and greater flexibility for customization.

Forward-looking information indicates that the transaction may be subject to various risks and uncertainties, including changes in the broader MEMS market, regulatory approvals, and integration challenges. However, the acquisition aligns with STMicroelectronics' strategic direction to strengthen its position in key segments of the automotive, industrial, and consumer markets.

References:
[1] https://www.stocktitan.net/news/STM/st-microelectronics-to-strengthen-position-in-sensors-with-qp7jiwur6215.html