STMicroelectronics Picks Up NXP's MEMS Sensor Division in a $950 Million All-Cash Deal

STMicroelectronics is expanding its sensor business — by snapping up the MEMS sensor arm of rival NXP in a deal valued at up to $950 million in cash.

"The planned acquisition is a great strategic fit for ST," claim STMicro's Marco Cassis, president of the group responsible for MEMS sensors, among other things, of the acquisition."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 [Integrated Device Manufacturer] model, with technology R&D [Research & Development], 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," adds NXP's Jens Hinrichsen. "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 deal sees STMicro taking over a NXP's MEMS sensor products aimed primarily at automotive safety and used in everything from airbags and vehicle dynamic control systems to engine monitoring and security systems, but also including its industrial pressure sensor and accelerometer range too. The MEMS team at NXP is expected to transfer to STMicro, though nothing has been said yet of layoffs to come.

The acquisition is set to cost STMicro $900 million in cash up-front, with a further $50 million "subject to the achievement of technical milestones." Should the deal pass regulatory approval, it is expected to close in the first half of 2026.