STMicroelectronics plans to acquire NXP's MEMS sensor business for $950 million in cash. This business focuses on automotive safety products and sensors for industrial applications. Furthermore, ST's second-quarter 2025 financial report shows that automotive revenue fell short of expectations. The industrial sector's book-to-sales ratio remained above 1 in the second quarter, while the automotive sector's book-to-sales ratio fell below 1. This acquisition will complement and expand ST's leading MEMS sensor technology and product portfolio, creating new opportunities for development in automotive, industrial, and consumer applications.
MEMS sensors have become indispensable electronic components for modern automotive safety, electrification, automation, and connectivity. As cars evolve towards smarter and safer features, market demand for high-performance, high-reliability MEMS inertial sensors is exploding. Yole Development and other institutions predict that the automotive MEMS inertial sensor market will continue to outpace the overall MEMS market. This acquisition strengthens ST's position in the future smart car value chain and provides investors with a clear path to profitable growth. The transaction is expected to be directly accretive to ST's earnings per share (EPS) upon completion.
NXP's MEMS sensor product line is deeply focused on automotive safety. This includes passive safety sensors that protect occupants in the event of a collision (such as airbag collision sensing), active safety sensors that ensure vehicle stability (such as electronic stability control (ESC)), and monitoring sensors that provide continuous health monitoring (such as tire pressure monitoring systems (TPMS), engine management, and convenience and safety systems).
The acquired business includes high-performance pressure sensors and accelerometers for industrial applications, providing ST with a core capability to expand into new markets such as factory automation and condition monitoring. ST already possesses strong innovation capabilities and a robust roadmap in the automotive MEMS field, with a deep customer network among the world's top Tier 1 automotive suppliers. The integration of NXP's business will create a significant "1+1 greater than 2" effect, making ST an even more core supplier of intelligent automotive sensors.
Source from Internet
STMicroelectronics' latest financial report for the second quarter of 2025 shows revenue of $2.766 billion, a year-on-year decrease of 14.4% and a quarter-on-quarter increase of 9.9%. Its gross profit margin was 33.5%, a decrease of 6.6 percentage points year-on-year and an increase of 0.1 percentage point quarter-on-quarter. The company reported a GAAP operating loss of $133 million and a GAAP net loss of $97 million.
In the second quarter, ST's embedded processing business (Microncontrollers) revenue was $847 million, a year-on-year decrease of 6.5% and a quarter-on-quarter increase of 14.1%.
ST President and CEO Jean-Marc Chery stated that the company's second-quarter revenue exceeded the midpoint of its guidance range, driven by growth in the personal electronics and industrial sectors, while automotive revenue was slightly below expectations. The integration of NXP's MEMS sensor business will quickly and effectively improve ST's overall profit structure, mitigate the pressure from market volatility, and provide important support for restoring stable profitability.
MEMS Sensors Applications
MEMS achieves miniaturization, intelligence, low power consumption, and high reliability beyond the reach of traditional mechanical sensors by integrating micron-scale mechanical structures (such as cantilever beams, mass fasteners, and cavities) with electronic circuits on silicon chips.
In automotive applications, MEMS sensors are at the core of sensing the physical world.
Airbag systems: MEMS accelerometers detect collisions in milliseconds, triggering airbag deployment.
Electronic Stability Program (ESC): MEMS gyroscopes sense vehicle slip angles, and accelerometers sense lateral acceleration, collaboratively controlling braking to prevent loss of control.
Tire Pressure Monitoring System (TPMS): MEMS pressure sensors monitor tire pressure in real time, improving safety and energy efficiency.
Navigation and Autonomous Driving: High-precision MEMS inertial measurement units (IMUs, integrating multi-axis gyroscopes and accelerometers) provide continuous dead reckoning capabilities even when GPS signals are lost, making them essential components for Level 3 and higher autonomous driving.
The industrial sector also relies on MEMS to achieve intelligent upgrades.
Predictive maintenance: MEMS accelerometers continuously monitor vibration in motors, pumps, and fans, providing early warnings before failures occur.
Process control: MEMS pressure sensors precisely control fluid pressure and flow.
Equipment condition monitoring: MEMS inertial sensors track device posture, movement, and drop impact.
Conclusion
The transaction is expected to close in the first half of 2026 and is subject to regulatory review. However, ST's intentions are clear. At a time when its traditional businesses are under pressure, ST is decisively acquiring leading-edge MEMS sensor technology and product portfolios, particularly in the fast-growing automotive safety and intelligent fields, to establish a stronger lead and expand its industrial reach. As the core hub connecting the physical world and digital intelligence, ST views the strategic value of MEMS sensors as a key engine for driving future growth and revitalizing profitability.
As automobiles and industrial equipment increasingly become highly intelligent electronic systems, whoever masters the precise sensory perception of the physical world will have the initiative to define the future of intelligent experiences. STMicroelectronics' $950 million acquisition is a key move in the new chess game of the semiconductor industry, and a strategic breakthrough based on MEMS technology has accelerated.