NXP in talks to buy chip developer Ambarella, FT reports
NXPI•NXP in talks to buy Ambarella, FT reports
July 31 (Reuters) - NXP Semiconductors NXPI.O is in talks to buy chip designer Ambarella AMBA.O, the Financial Times reported on Friday, citing people familiar with the matter.
Shares of Ambarella, with a market capitalization of $3.25 billion, jumped nearly 17%, while NXP fell over 3% following the report.
Potential deal could expand NXP's vehicle and AI chip capabilities
- A potential deal could bolster NXP's capabilities in software-defined vehicles, radar and electrification, as Ambarella develops low-power AI chips and software for edge devices such as cameras, vehicles and robotics.
- Discussions are ongoing and might not lead to a transaction, FT said.
- NXP and Ambarella did not immediately respond to Reuters' requests for comment.
- The development comes after NXP forecast quarterly revenue above analysts' estimates on Tuesday, signaling strong demand for its chips in automotive, industrial and data-center markets.
