July 28, 2025 /SemiMedia/ — STMicroelectronics said it will acquire NXP Semiconductors' MEMS sensor business for up to $950 million in cash, strengthening its position in automotive and industrial sensing applications.

The deal includes a $900 million upfront payment, with an additional $50 million contingent upon achieving technical milestones. The acquisition is expected to close in the first half of 2026.

The targeted product portfolio includes automotive safety sensors—both passive systems like airbags and active systems such as vehicle dynamics sensors—as well as monitoring sensors for tire pressure, engine management, and comfort or safety features. Industrial-grade pressure sensors and accelerometers are also part of the acquisition.

The business generated approximately $300 million in revenue in 2024 and is expected to contribute positively to ST’s gross margin, operating margin, and earnings per share following completion. Automotive MEMS inertial sensors are projected to outpace the overall MEMS market in growth over the coming years.

Marco Cassis, President of ST’s Analog, MEMS, and Sensors Group, said the acquisition complements the company’s existing MEMS portfolio and enhances its reach across automotive, industrial, and consumer electronics markets. He emphasized the synergies in technology and customer base, enabling stronger market positioning.

ST will integrate the acquired assets into its vertically integrated MEMS manufacturing platform, which covers design, front-end and back-end processing. This model allows for faster development cycles and greater customization flexibility.

For NXP, the sale reflects a possible strategic shift, enabling the company to reallocate resources to core or high-growth areas.

Industry analysts believe the acquisition could reshape the competitive dynamics of the MEMS sensor market. With ST expanding its capabilities, rivals may accelerate innovation and M&A activities, potentially driving broader transformation across the sensor supply chain.