STMicroelectronics Outlines $950M Acquisition of NXP’s Sensor Business
Coverage by Electronics Maker
- Marco Cassis, President, Analog, Power & Discrete, MEMS and Sensors Group, STMicroelectronics
- Simone Ferri, APMS Group VP & General Manager of the MEMS Sub-Group, STMicroelectronics
In a significant strategic move, STMicroelectronics announced its plan to acquire NXP Semiconductors’ MEMS sensor business for up to $950 million in cash. The announcement was made during a virtual media presentation held on July 25, 2025, where ST executives elaborated on the business rationale, integration strategy, and future roadmap.
What does this acquisition mean for STMicroelectronics?
This acquisition is a major strategic fit for ST. It complements our existing MEMS portfolio by adding technologies and customer relationships that are especially strong in automotive safety and industrial markets. It allows us to expand our leadership in MEMS sensors, positioning us to capture new growth opportunities across all key segments: automotive, industrial, and consumer.
What are the key products and technologies ST will gain through this deal?
The portfolio we’re acquiring includes MEMS-based motion and pressure sensors, specifically tailored for automotive applications like airbag systems, vehicle dynamics, TPMS, and engine monitoring. It also includes pressure sensors and accelerometers for industrial markets. These are well-established products with strong design-ins and high reliability, making them a perfect extension to our current offerings.
How is the deal structured financially?
ST will pay up to US$950 million, with $900 million upfront and an additional $50 million subject to the achievement of technical milestones. This is an all-cash transaction, funded entirely through our existing liquidity. We expect it to be accretive to our earnings per share from the time the deal closes, which is targeted for the first half of 2026, subject to regulatory approvals.
What makes this acquisition beneficial for ST’s customers?
Our customers—especially Tier 1 automotive suppliers—will benefit from an even broader portfolio, deeper domain expertise, and a more robust product roadmap. With this acquisition, we’re now better positioned to deliver custom sensor solutions for safety, electrification, automation, and connected vehicles, while continuing to support existing industrial clients.
How does ST plan to integrate NXP’s MEMS capabilities into its operations?
We will leverage our Integrated Device Manufacturer (IDM) model, which spans from design and technology development to manufacturing and testing. This model enables us to accelerate innovation cycles, offer more customization, and maintain full control over quality and supply chain. NXP’s technologies and teams will integrate into our MEMS Sub-Group to enhance product development and delivery globally.
Will this acquisition improve ST’s financial profile?
NXP’s MEMS sensor business generated approximately $300 million in revenue in 2024, and both its gross and operating margins are already in line with our long-term target model for 2027–2028. We expect the transaction to positively impact earnings from the start and help drive growth in high-margin segments.
Why is there such a strong emphasis on the automotive segment?
MEMS sensors in automotive safety systems are experiencing faster growth than the overall MEMS market. This is driven by trends like ADAS, electrification, and vehicle autonomy. The acquired portfolio adds proven, automotive-qualified sensors—many of which are already embedded in safety-critical systems—to ST’s ecosystem, which will be key to serving OEMs and Tier 1s globally.
Beyond automotive, what other sectors will benefit?
In industrial applications, we’re gaining technology that strengthens our position in factory automation, predictive maintenance, and asset monitoring. For consumer devices, the additional sensing capabilities will support next-gen innovations in wearables, personal healthcare, and mobile platforms, especially in applications demanding precise motion and environmental sensing.
What happens to the people and R&D assets from NXP’s MEMS team?
We are welcoming the NXP MEMS team into ST, including engineers, developers, and support functions. Their experience and technical know-how—particularly in automotive-qualified sensors—will be critical as we expand our roadmap and build on the existing IP. The integration will ensure continuity for existing customers and open up co-development opportunities.
How does this acquisition support ST’s long-term strategy in MEMS?
ST’s vision is to be a global enabler of smarter, safer, and more connected systems. MEMS sensors are essential building blocks for this vision. With this acquisition, we now hold a broader, deeper sensor portfolio, a larger innovation pipeline, and a stronger customer base across all regions. It moves us closer to becoming the undisputed leader in automotive and industrial-grade sensing.
What are ST’s priorities after the deal closes?
Our immediate priority will be the integration of NXP’s operations into our MEMS Sub-Group. We’ll align product roadmaps, combine R&D efforts, and engage key customers to ensure a smooth transition. Medium-term, we aim to expand offerings in safety-critical automotive sensors and AI-integrated sensing platforms, especially for electrified and autonomous vehicles.
What’s the key takeaway from this acquisition for the industry?
This is a powerful move that aligns with where the industry is headed—toward intelligent, real-time, safety-focused sensing. With this acquisition, ST is not just buying technology; we are acquiring the capability to lead the next generation of sensor innovation across automotive, industrial, and consumer markets.
