STMicroelectronics is to acquire NXP Semiconductors’ MEMS (microelectromechanical systems) sensors business.

The deal will see ST pay $950 million in cash for the business, including $900m upfront and the additional $50m on the completion of technical milestones.

In a statement, ST said the acquisition would “complement and expand ST’s leading MEMS sensors technology and product portfolio,” allowing the company to unlock new opportunities for development across automotive, industrial, and consumer applications.

The portfolio ST will acquire largely consists of automotive safety and monitoring sensors, in addition to pressure sensors and accelerometers for industrial applications.

“The planned acquisition is a great strategic fit for ST,” says Marco Cassis, president, analog, power & discrete, MEMS and sensors group of STMicroelectronics. “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.”

While this is the first acquisition ST has undertaken since 2021, the company has announced several partnerships this year, investing in the development of materials that could serve as alternatives to conventional silicon.

In February 2025, ST launched a new data center photonics chip. Dubbed the PIC100 and developed in collaboration with Amazon Web Services (AWS), the chip supports incoming 800Gbps and 1.6Tbps optical interconnects across all workloads, including artificial intelligence.

This was followed by a deal with Innoscience in April, which will see the two companies receive access to each other’s manufacturing capabilities to develop and manufacture gallium nitride on silicon outside their current jurisdictions.