STMicroelectronics to Acquire NXP’s MEMS Sensor Business to Strengthen Global Sensor Leadership

STMicroelectronics (NYSE: STM), a global leader in semiconductor solutions serving a wide range of electronic applications, has announced a definitive agreement to acquire the MEMS (Micro-Electro-Mechanical Systems) sensor business from NXP Semiconductors (NASDAQ: NXPI). This strategic move aims to enhance ST’s capabilities and market presence in the global sensor space. NXP’s MEMS portfolio, which focuses on automotive safety and industrial applications, will complement and expand ST’s existing technology and offerings across automotive, industrial, and consumer markets.

Marco Cassis, President of ST’s Analog, MEMS and Sensors Group, commented:
“This acquisition is a perfect strategic fit for ST. It brings highly complementary technologies and customer relationships focused on automotive safety and industrial sensing. Combined with our robust MEMS portfolio and vertically integrated manufacturing model, we are positioned to deliver even greater value to our global customer base through advanced R&D, innovative product design, and high-volume production.”

Jens Hinrichsen, Executive Vice President and General Manager of NXP’s Analog and Automotive Embedded Systems division, noted:
“NXP has long been recognized as a trusted supplier of MEMS motion and pressure sensors in the automotive industry. However, following a detailed portfolio review, we concluded that this business no longer aligns with our long-term strategic priorities. We believe STMicroelectronics is the right home for this business, where it can thrive, backed by a compatible product roadmap, production ecosystem, and strategic vision. We’re confident that the MEMS sensor team will find a strong and promising future within ST.”

The acquired product line includes MEMS sensors primarily aimed at automotive safety applications—such as passive (airbag) systems, active vehicle dynamics, and monitoring sensors like tire pressure monitoring systems (TPMS), engine control, and convenience/safety features. It also covers pressure sensors and accelerometers used in industrial applications.

ST is well-positioned to capitalize on this acquisition thanks to its strong relationships with Tier 1 automotive suppliers and an innovation-driven MEMS roadmap tailored for the rapidly growing automotive market. MEMS technology continues to play a pivotal role in enabling smarter, safer, more connected, and electrified vehicles.

Industry forecasts suggest that the automotive MEMS inertial sensor market will grow faster than the broader MEMS market. The acquired business is expected to generate approximately $300 million in revenue in 2024, with strong gross and operating margins that will positively contribute to ST’s financial performance. The transaction is also anticipated to be accretive to ST’s earnings per share post-closing.

Through this acquisition, ST will gain enhanced MEMS expertise, expanded product development capabilities, a rich portfolio of IP for automotive safety applications, and a highly skilled engineering team. The integration will be supported by ST’s proven integrated device manufacturer (IDM) model, which spans the full MEMS lifecycle from design and fabrication to testing and packaging—allowing for faster innovation and greater customization.

The purchase agreement is valued at up to $950 million in cash, including $900 million paid upfront and a potential $50 million milestone payment based on technology achievements. The transaction will be funded using ST’s existing cash reserves and is subject to customary regulatory approvals. The deal is expected to close in the first half of 2026.