STMicroelectronics is acquiring NXP Semiconductors’ MEMS sensors business, an operation that produces electro-mechanical sensors for automotive safety and industrial applications, at a purchase price of up to US$950 million in cash, including US$900 million upfront and another US$50 million if the business achieves certain technical milestones.
The acquisition agreement comes not long after market research firm Yole Group said in a report that the worldwide MEMS sensor market will grow from $15.4 billion in revenue last year to about $19.2 billion in 2030.Â
Following the announcement of the deal between STMicro and NXP, Clyde Midelet, PhD, Senior Technology & Market Analyst, Sensing at Yole Group, observed, “The MEMS industry has been stabilizing over the past few years; the main players are well-established. This leads to some business model movements by the players to increase their revenues.”
The business at the heart of the deal was a $300 million revenue operation in 2024, according to STMicro. Last year was broadly seen as a recovery year in the MEMS business as companies were able to distance themselves from previous inventory drag.
Marco Cassis, President, Analog, Power & Discrete, MEMS and Sensors Group of STMicroelectronics, said on a conference call that automotive sensors for safety applications were the “primary target” in his company’s move to acquire the business. These sensors include passive sensors for systems like airbags and active sensors for vehicle dynamics. It also includes sensors for monitoring tire pressure, engine management, and security.
“MEMS inertial sensors in automotive will grow faster than the broader MEMS market,” he said.
“The planned acquisition is a great strategic fit for ST,” he added in a statement. “Together with ST’s existing MEMS portfolio, these highly complementary technologies and customer relationships, focused on automotive safety and industrial technologies, will strengthen our position in sensors across key segments in automotive, industrial and consumer applications. By leveraging our IDM model, with technology R&D, product design and advanced manufacturing, we will better serve all our customers worldwide.”
Jens Hinrichsen, Executive Vice President and General Manager, Analog and Automotive Embedded Systems of NXP, explained in a statement that the decision to sell the MEMS business came “after careful portfolio review,” which concluded that it does not fit into the company’s “long-term strategic direction.”
The deal is expected to close in the first half of next year.