FILE PHOTO: The logo of electronics and semiconductors manufacturer STMIcroelectronics is seen outside a company building in Montrouge, near Paris, France, July 12, 2022. REUTERS/Sarah Meyssonnier/File Photo
(Reuters) -French-Italian chipmaker STMicroelectronics said on Thursday it would acquire part of NXP Semiconductors' sensor unit for up to $950 million in cash.
The deal would expand STMicro's portfolio of MEMS-based electromechanical sensors, which include safety and monitoring sensors for vehicles as well as pressure sensors for industrial applications.
The unit generated revenue of about $300 million last year, STMicro said in a statement.
As part of the agreement, STMicro would make an upfront payment of $900 million and $50 million on achieving certain technical milestones.
The deal is expected to close in the first half of 2026.
Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets have faced a sales slump as they grapple with low demand and high inventories.
Earlier in the day, STMicro, one of Europe's largest chipmakers, reported its first quarterly loss in over a decade as it took a $190 million hit from restructuring and impairment costs.
(Reporting by Mariam Sunny in Bengaluru; Editing by Anil D'Silva)
