On February 10, 2026, STMicroelectronics (ST) officially announced the completion of its acquisition of NXP's MEMS sensor business.
This transaction was first announced in July 2025 and has now received full approval from global regulatory agencies, marking a crucial step in ST's strategic layout in the global sensor field.
It is reported that the acquisition transaction amount is as high as 950 million US dollars in cash, including 900 million US dollars in advance payment and 50 million US dollars to be paid after specific technological milestones are achieved. NXP's MEMS sensor business generated approximately $300 million in revenue in 2024, primarily focused on automotive safety products, non safety automotive applications, and industrial applications.
ST acquires NXP MEMS sensor business to form technological complementarity
According to the "MEMS Industry Status -2025 Edition" report released by Yole, ST ranks 6th and NXP ranks 13th among the top 30 MEMS manufacturers worldwide.
NXP has long been recognized as a leading supplier of automotive MEMS inertial sensors and pressure sensors in the industry.
Marco Cassis, President of STMicroelectronics' Analog Devices, Power Devices, Discrete Devices, and MEMS Sensors Division, stated that this acquisition will form a strong technological complement to the company's existing MEMS product line, particularly in the areas of automotive safety and industrial technology. By integrating the advantageous resources and customer networks of both parties, we will further consolidate our sensor market position in key application areas such as automotive, industrial, and consumer electronics. ”
According to preliminary assessment, this acquisition is expected to bring approximately $45 million in revenue contribution to ST in the first quarter of 2026. And it will bring significant gross profit and operating profit growth to the company. This acquisition not only strengthens ST's position in the automotive safety field, but also consolidates its comprehensive advantages in the MEMS sensor field of the automotive and industrial end markets.
As a global vertically integrated semiconductor manufacturer (IDM), ST has 48000 creators and innovators of semiconductor technology, with expertise in semiconductor supply chains and advanced manufacturing equipment. The company collaborates with over 200000 customers and thousands of partners to develop products and solutions. Its technology makes people's travel smarter, power and energy management more efficient, and cloud connected autonomous devices more widely used. ST 2025 Q4 has resumed year-on-year growth momentum
In terms of financial performance, ST announced its fourth quarter and full year financial results for the fiscal year 2025 on January 29, 2026. According to the company's official financial report and Reuters, ST achieved a net revenue of $11.8 billion for the full year of 2025, a decrease of 11.1% from 2024 due to the weak automotive sector and slowing industrial market demand. The annual gross profit margin was 33.9%, with an operating profit of $175 million (including $376 million in impairment, restructuring expenses, and other related business exit costs). According to non GAAP accounting standards, the annual operating profit margin was 4.7%, net profit was $486 million, and diluted earnings per share were $0.53.
It is worth noting that despite facing challenges throughout the year, ST achieved a net revenue of $3.33 billion in the fourth quarter of 2025, a year-on-year increase of 0.2%, successfully restoring its year-on-year growth momentum. The gross profit margin for the fourth quarter reached 35.2%, with a non GAAP operating profit margin of 8.0%. The company maintained a stable cash flow performance throughout the year, achieving a free cash flow of $265 million, which was the result of investing $1.79 billion in net capital expenditures. As of the end of 2025, the company's net financial position is $2.79 billion, total liquidity is $4.92 billion, and it has received investment grade credit ratings of BBB+(negative outlook) from Standard&Poor's and Baa1 (stable outlook) from Moody's.
Jean Marc Chery, President and CEO of STMicroelectronics, stated, "2025 has been a challenging year, but we have resumed year-on-year growth in the fourth quarter. Our strategic focus remains on accelerating innovation, executing a company wide manufacturing restructuring and global cost structure optimization plan, and strengthening the generation of free cash flow." Looking ahead to the first quarter of 2026, the company expects a midpoint net revenue of $3.04 billion and a gross profit margin of approximately 33.7%.
Summary:
Industry analysts point out that the acquisition of NXP MEMS business will help ST further expand its sensor product line in high growth areas, especially in key markets such as automotive safety and industrial automation. With the continuous development of global electric vehicles and intelligent driving technology, the demand for MEMS sensors is expected to maintain strong growth, which will provide strong support for ST's medium - and long-term development.
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