Qualcomm Incorporated is to buy NXP Semiconductors in a transaction worth $38 billion, making it the world’s biggest deal within the chip sector.
NXP, which supplies chipsets into the set-top box market, is also a leading force in the automotive industry. The purchase has already been agreed by the boards of both companies.
“With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry. The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale,” said Steve Mollenkopf, CEO of Qualcomm Incorporated.
“By joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realize all the benefits of the intelligently connected world.”
Qualcomm already makes chips found in Android devices and Apple iPhones.
“The combination of Qualcomm and NXP will bring together all technologies required to realise our vision of secure connections for the smarter world, combining advanced computing and ubiquitous connectivity with security and high performance mixed-signal solutions including microcontrollers. Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device level security,” said Rick Clemmer, NXP CEO.
NXP Semiconductors made its debut in August 2006 having been spun out of the former Philips Semiconductors. It later bought Conexant’s set-top box business.
The deal is not expected to attract the attention of regulators.
