STMicroelectronics (ST) has announced a definitive agreement to acquire the MEMS sensors business of NXP Semiconductors for up to $950 million in cash. The acquisition will enhance ST’s position in the global sensors market, particularly in the automotive and industrial sectors.
The deal includes $900 million to be paid upfront and an additional $50 million contingent on the achievement of technical milestones. It is expected to close in the first half of 2026, pending regulatory approvals and other closing conditions.
The MEMS (Micro-Electro-Mechanical Systems) sensors unit from NXP specializes in automotive safety applications such as airbags, vehicle dynamics control, and tyre pressure monitoring systems (TPMS). It also provides pressure sensors and accelerometers for industrial use.
According to ST, the acquisition complements its existing MEMS portfolio and expands its capabilities across automotive, industrial, and consumer applications.
Marco Cassis, President of ST’s Analog, Power & Discrete, MEMS and Sensors Group, said the acquisition is a strong strategic fit. “He explained that the technologies and customer relationships from NXP will strengthen ST’s position across key markets.” “By leveraging our IDM model, with technology R&D, product design and advanced manufacturing, we will better serve all our customers worldwide,” he added.
Jens Hinrichsen, Executive Vice President and GM of Analog and Automotive Embedded Systems at NXP, said the decision followed a review of NXP’s long-term priorities. “We have decided the business does not fit into our long-term strategic direction,” he said. “We are gratified that the MEMS sensor team will have an excellent home and long-term future at ST.”
The business generated approximately $300 million in revenue in 2024 and is expected to be accretive to ST’s gross margin, operating margin, and earnings per share from the time of completion.
ST expects the acquisition to enhance its R&D capabilities and innovation roadmap, especially in the fast-growing market of MEMS inertial sensors for automotive applications. The company will also gain access to established customer relationships with automotive Tier 1 suppliers.
The transaction reflects ST’s ongoing commitment to advancing energy-efficient, high-performance sensor technologies that support future demands in electrification, automation, and connectivity. With its integrated device manufacturer model, ST will handle all stages of MEMS development—from design to manufacturing, testing, and packaging—ensuring flexibility and fast innovation cycles.
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