Latest news with #STMicro
Business Times
6 days ago
- Automotive
- Business Times
STMicro to acquire part of NXP Semiconductors' sensor business for US$950 million
[SINGAPORE] STMicroelectronics (STMicro) has entered into an agreement to buy part of Dutch-based NXP Semiconductors' sensor business for up to US$950 million. The deal would expand STMicro's portfolio of micro-electromechanical systems (Mems) sensors, which includes automotive safety products as well as sensors for industrial applications. In 2024, the NXP unit generated about US$300 million in revenue, with gross and operating margins both 'significantly accretive' for STMicro. The transaction is also expected to be accretive to the chipmaker's earnings per share from completion, it said in a statement. The Mems sensors portfolio to be acquired primarily targets automotive safety sensors – such as for airbags and vehicle dynamics – and monitoring sensors, such as for engine management. It also includes pressure sensors and accelerometers for industrial applications. 'STMicro is well-positioned to leverage strong, established customer relationships with automotive Tier 1s with its innovation road map in a rapidly expanding Mems automotive market,' it said. The planned acquisition will enhance STMicro's Mems technology, as well as product research and development capabilities and road map. Once completed, the expanded business will take advantage of STMicro's integrated device manufacturer model for Mems, enabling faster innovation cycles and greater flexibility for customisation. The deal is for a purchase price of up to US$950 million in cash, consisting of US$900 million to be paid up front and US$50 million to be paid subject to the achievement of technical milestones. The transaction will be financed with existing liquidity and is expected to close in the first half of 2026.
Business Times
6 days ago
- Automotive
- Business Times
STMicro acquires part of NXP Semiconductors' sensor business for US$950 million
[SINGAPORE] STMicroelectronics (STMicro) has entered into an agreement to buy part of Dutch-based NXP Semiconductors' sensor business for up to US$950 million. The deal would expand STMicro's portfolio of micro-electromechanical systems (Mems) sensors, which include automotive safety products as well as sensors for industrial applications. In 2024, the NXP unit generated about US$300 million in revenue, with gross and operating margin both 'significantly accretive' for STMicro. It is also expected to be accretive to the chipmaker's earnings per share from completion, it said in a statement. The Mems sensors portfolio to be acquired primarily targets automotive safety sensors – such as for airbags and vehicle dynamics – and monitoring sensors, such as for engine management. It also includes pressure sensors and accelerometers for industrial applications. 'STMicro is well-positioned to leverage strong, established customer relationships with automotive Tier 1s with its innovation road map in a rapidly expanding Mems automotive market,' it said. The planned acquisition will enhance STMicro's Mems technology, as well as product research and development capabilities and road map. Once completed, the expanded business will take advantage of STMicro's integrated device manufacturer model for Mems, enabling faster innovation cycles and greater flexibility for customisation. The deal is for a purchase price of up to US$950 million in cash, including US$900 million up front and US$50 million subject to the achievement of technical milestones. The transaction will be financed with existing liquidity and is expected to close in the first half of 2026.
The Star
6 days ago
- Automotive
- The Star
STMicro to buy part of NXP Semiconductors' sensor business for up to $950 million
FILE PHOTO: The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/File Photo (Reuters) -French-Italian chipmaker STMicroelectronics said on Thursday it would acquire part of NXP Semiconductors' sensor unit for up to $950 million in cash. The deal would expand STMicro's portfolio of MEMS-based electromechanical sensors, which include safety and monitoring sensors for vehicles as well as pressure sensors for industrial applications. The unit generated revenue of about $300 million last year, STMicro said in a statement. As part of the agreement, STMicro would make an upfront payment of $900 million and $50 million on achieving certain technical milestones. The deal is expected to close in the first half of 2026. Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets have faced a sales slump as they grapple with low demand and high inventories. Earlier in the day, STMicro, one of Europe's largest chipmakers, reported its first quarterly loss in over a decade as it took a $190 million hit from restructuring and impairment costs. (Reporting by Mariam Sunny in Bengaluru; Editing by Anil D'Silva)
Yahoo
6 days ago
- Automotive
- Yahoo
STMicro to buy part of NXP Semiconductors' sensor business for up to $950 million
(Reuters) -French-Italian chipmaker STMicroelectronics said on Thursday it would acquire part of NXP Semiconductors' sensor unit for up to $950 million in cash. The deal would expand STMicro's portfolio of MEMS-based electromechanical sensors, which include safety and monitoring sensors for vehicles as well as pressure sensors for industrial applications. The unit generated revenue of about $300 million last year, STMicro said in a statement. As part of the agreement, STMicro would make an upfront payment of $900 million and $50 million on achieving certain technical milestones. The deal is expected to close in the first half of 2026. Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets have faced a sales slump as they grapple with low demand and high inventories. Earlier in the day, STMicro, one of Europe's largest chipmakers, reported its first quarterly loss in over a decade as it took a $190 million hit from restructuring and impairment costs. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
6 days ago
- Automotive
- CNA
STMicro to buy part of NXP Semiconductors' sensor business for up to $950 million
French-Italian chipmaker STMicroelectronics said on Thursday it would acquire part of NXP Semiconductors' sensor unit for up to $950 million in cash. The deal would expand STMicro's portfolio of MEMS-based electromechanical sensors, which include safety and monitoring sensors for vehicles as well as pressure sensors for industrial applications. The unit generated revenue of about $300 million last year, STMicro said in a statement. As part of the agreement, STMicro would make an upfront payment of $900 million and $50 million on achieving certain technical milestones. The deal is expected to close in the first half of 2026. Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets have faced a sales slump as they grapple with low demand and high inventories. Earlier in the day, STMicro, one of Europe's largest chipmakers, reported its first quarterly loss in over a decade as it took a $190 million hit from restructuring and impairment costs.
