- Chip manufacturing giant Qualcomm reached a deal to purchase NXP Semiconductors for $110 per share in cash, a deal worth approximately $47 billion, the company announced Thursday.
- NXP specializes in mixed-signal semiconductor electronics and works closely with the automotive industry, where it works supplying automotive infotainment systems, along with networking and safety solutions, according to the announcement.
- Together, the companies expect annual revenues exceeding $30 billion and will work to specialize in the mobile, Internet of Things, security and networking markets, among others.
Both Qualcomm and NXP are looking toward a future of mobile technologies and semiconductor solutions that are secure. "The combination of Qualcomm and NXP will bring together all technologies required to realize our vision of secure connections for the smarter world," NXP CEO Rick Clemmer said in a statement.
The focus on security is particularly relevant in a time when cybersecurity concerns have reached a fever pitch. Beyond recent large scale hacks against internet providers, many are questioning the security of vehicles as they become more connected and software-reliant. In response, the U.S. Department of Transportation has rolled out best practices for vehicle manufacturers to follow to help ensure that a vehicle cannot be hacked.
Through the deal, Qualcomm is also looking to expand its reach in the IoT space, a growing area of focus for many companies as devices are increasingly expected to communicate with one another, creating a connected ecosystem.