ST to acquire NXP’s MEMS business

NXP has struck a deal with STMicroelectronics to sell its MEMS sensor business for up to 950 million dollars in cash. The acquired unit, which generated roughly 300  million dollars in revenue in 2024, primarily focuses on automotive safety sensors, both passive (airbags) and active (vehicle dynamics), as well as monitoring sensors. It also sells pressure sensors and accelerometers for industrial applications.

“NXP is a leading supplier of automotive MEMS-based motion and pressure sensors, with a long history of strong customer adoption,” said Jens Hinrichsen, Executive Vice President and General Manager, Analog and Automotive Embedded Systems of NXP. “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.”

In Yole Group’s 2024 ranking of the top 30 MEMS vendors, NXP held the 13th position. With the acquisition expected to be finalized in the first half of 2026, STMicroelectronics is projected to move up from 6th to third place, right behind Bosch and Broadcom. Before this deal, STMicroelectronics was already manufacturing MEMS components for NXP’s fabless business as a foundry.

NXP, meanwhile, posted Q2 revenue of 2.93 billion dollars, slightly above guidance, and forecast Q3 sales of 3.15 billion dollars, signaling early signs of cyclical recovery. Growth is driven by automotive inventory normalization and renewed momentum in industrial and IoT markets.