STMicroelectronics (ST) has agreed to acquire the MEMS sensors business of NXP Semiconductors for up to US$950 million.

This includes an upfront payment of US$900 million and an additional US$50 million based on specific technical milestones.

The deal will be funded through ST’s existing liquidity and is expected to close in the first half of 2026, pending regulatory approvals.

The acquisition will enhance ST’s MEMS sensor portfolio for automotive, industrial, and consumer markets.

NXP’s MEMS business generated US$300 million in revenue in 2024 and includes automotive safety sensors, industrial pressure sensors, and accelerometers.

ST plans to integrate these products into its existing operations and expects a positive impact on earnings per share once completed.

Recent STMicroelectronics developments