Pune, India | September 5, 2025
STMicroelectronics has announced plans to acquire NXP Semiconductors’ MEMS sensor business in a $950 million all-cash deal. The agreement includes an upfront payment of $900 million. Additionally, another $50 million will follow if certain technical goals are met.
This acquisition will therefore help ST expand its market share and product range. Moreover, the deal supports its growth in automotive, industrial, and consumer electronics segments.
Consequently, the move boosts ST’s position in the fast-growing MEMS space. In 2024, NXP’s MEMS division earned about $300 million. It includes motion and pressure sensors used in vehicle safety systems like airbags and tire pressure monitoring. As a result, ST will be able to offer broader sensing solutions to its customers.
In industrial sectors, these sensors support robotics, automation, and monitoring. For consumer products, they enhance sensing in smartphones, wearables, and smart home devices. Furthermore, ST aims to accelerate product development by combining NXP’s MEMS technology with its in-house capabilities.
Executives from both firms have expressed strong support for the deal. For example, Marco Cassis, President of ST’s Analog, MEMS and Sensors Group, spoke of the portfolio synergies. He said NXP’s mature technology and loyal customer base would strengthen ST’s presence in key markets.
Similarly, Jens Hinrichsen, Executive Vice President at NXP, echoed the sentiment. He believes ST offers a strong future for NXP’s MEMS assets. He also praised the engineering teams and expressed confidence in a smooth transition for customers and partners.
ST will fund the acquisition using its existing cash reserves. The deal is expected to close in the first half of 2026. However, this depends on regulatory approvals and standard closing conditions. ST anticipates that the acquisition will quickly boost its earnings per share.
The transaction supports ST’s Integrated Device Manufacturer (IDM) model. This model unifies R&D, design, manufacturing, and packaging. In addition, NXP’s MEMS expertise will help ST improve efficiency and increase its intellectual property. It also aligns with ST’s focus on electrification, automation, and edge AI.
This move comes as demand grows for advanced sensors. For instance, applications in electric vehicles, smart factories, and rugged, low-power systems are driving this trend. Therefore, expanding its MEMS portfolio positions ST to respond more effectively to market changes.
Moreover, the acquisition supports ST’s strategy of blending internal innovation with selective acquisitions. This approach allows it to offer flexible, scalable solutions to customers across industries.
In a forward-looking statement, ST noted possible risks tied to the deal. These include regulatory delays, integration challenges, and market fluctuations. Further details are available in its filings with the U.S. Securities and Exchange Commission.
Finally, this acquisition also fits ST’s long-term goals. It supports leadership in wide bandgap semiconductors, embedded AI, and energy efficiency. Additionally, the company aims to reach carbon neutrality in scopes 1 and 2—and parts of scope 3—by 2027.
By adding NXP’s MEMS assets, ST is expanding its global reach. Ultimately, it reinforces the company’s dedication to innovation, sustainability, and delivering advanced semiconductor solutions for the digital and energy-driven future.
