NXP Semiconductors Acquires TTTech Auto to Enhance Automotive Software Solutions for Software-Defined Vehicles

NXP acquires TTTech Auto for $625 million to enhance its automotive software solutions for software-defined vehicles.

Quiver AI Summary

NXP Semiconductors N.V. has announced its acquisition of TTTech Auto, a software solution provider known for its expertise in safety-critical systems for software-defined vehicles (SDVs), in an all-cash deal worth $625 million. This acquisition aligns with NXP's strategy to lead in automotive and Industrial IoT intelligent edge systems. The integration of TTTech Auto's technology will enhance NXP's CoreRide platform, allowing automakers to manage the increasing complexity of SDVs effectively, while also improving performance, safety, and time to market. With a shared vision for the transformation to SDVs, both companies aim to enable seamless and safe software integration, empowering automakers to deliver innovative features across different models efficiently. The deal is expected to strengthen NXP's market position and expand TTTech Auto's customer base under the NXP brand.

Potential Positives

• NXP Semiconductors is acquiring TTTech Auto, a leader in safety-critical systems for software-defined vehicles, strengthening its position in the rapidly growing automotive sector.
• The acquisition enhances NXP's CoreRide platform by integrating TTTech Auto's advanced software capabilities, which can simplify SDV development, increase performance, and improve safety for automakers.
• The inclusion of TTTech Auto's solutions is expected to accelerate the shift towards software-defined vehicles, aligning with the projected 48% CAGR between 2024 and 2027 for the SDV market.
• This strategic move reinforces NXP's commitment to becoming a leader in intelligent edge systems for automotive and Industrial IoT applications.

Potential Negatives

• The acquisition of TTTech Auto for $625 million may strain NXP's financial resources and result in increased debt, impacting investor confidence.
• Forward-looking statements in the press release highlight significant risks and uncertainties associated with the acquisition, which could lead to lower market expectations if the integration does not meet projected outcomes.
• The reliance on a third-party solution provider like TTTech Auto raises concerns about NXP's control over key software capabilities critical for the SDV market, potentially exposing it to operational risks.

FAQ

What is NXP's latest acquisition announcement?

NXP has announced the acquisition of TTTech Auto for $625 million, enhancing its automotive software capabilities.

How does TTTech Auto complement NXP's CoreRide platform?

TTTech Auto enhances NXP CoreRide with its expertise in safety-critical systems and middleware for software-defined vehicles.

What are software-defined vehicles (SDVs)?

SDVs are cars with advanced, interconnected systems allowing for data-driven services, feature upgrades, and cloud development.

What benefits does the acquisition provide to automakers?

The acquisition will help automakers reduce complexity, improve performance, and shorten their time to market for SDVs.

How will the acquisition impact existing TTTech Auto customers?

TTTech Auto will continue to serve existing customers while expanding its global reach under NXP's brand.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

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Full Release

• 
  NXP strengthens its automotive business with a leading software solution provider specialized in the systems, safety and security required for SDVs
  


• 
  TTTech Auto complements and accelerates the NXP CoreRide platform, enabling automakers to reduce complexity, maximize system performance and shorten time to market
  


• 
  The acquisition is the next milestone in NXP’s strategy to be the leader in intelligent edge systems in automotive and Industrial IoT
  

EINDHOVEN, The Netherlands, Jan. 07, 2025 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI), the worldwide leader in automotive processing and networking, announced today that it has entered into a definitive agreement to acquire TTTech Auto in an all-cash transaction valued at $625 million.

TTTech Auto, based in Vienna, Austria, is a leader in innovating unique safety-critical systems and middleware for software-defined vehicles (SDVs). TTTech Auto has established business relationships with many leading automotive OEMs, empowering them to focus on the driving experience while its solutions optimize performance, safety, integration, and software updates.

Pending regulatory approvals, TTTech Auto including its management team, intellectual property, assets, and approximately 1,100 engineering staff will join NXPs automotive team. As part of NXP, TTTech Auto will continue to serve existing customers and expand its global footprint under the NXP brand.

The transformation to software-defined vehicles



The automotive industry is undergoing a profound transformation, shifting from conventional hardware-based designs to platform-based SDVs with increasingly sophisticated, interconnected hardware and software systems. This transformation enables feature upgradeability, data-driven services, and native cloud development. The SDV market will expand to 45% penetration of global auto production in 2027, reflecting a 48% CAGR between 2024 and 2027

¹

.

To compete successfully, global automakers need new SDV platforms and architectures capable of safely and securely handling the increasing complexity of software integration, bringing scalability and fast time to market.

NXP

introduced

its NXP CoreRide platform in March, 2024 to strategically address this significant market opportunity and help the automakers swiftly transition to SDVs. The NXP CoreRide platform features NXP’s S32 vehicle compute, networking, and system power management. NXP CoreRide is the industry’s first open SDV platform purpose-built to break through hardware and software integration barriers and simplify complexity, scalability, and cost. TTTech Auto augments NXP’s hardware proficiency with added software expertise, delivering a uniquely capable platform from which automakers can build SDVs.

NXP CoreRide platform and TTTech MotionWise – A Powerful Combination



TTTech Auto joined the community of NXP CoreRide software partners when NXP launched its innovative SDV platform in March, 2024. NXP’s inclusion of TTTech Auto’s safety and integration capabilities will enable even stronger hardware/software integration benefits for the global ecosystem of NXP CoreRide partners, further streamlining SDV development efforts for automakers.

TTTech Auto’s MotionWise middleware platform has a proven industry track record and features automated software deployment in automotive high-performance compute platforms. Its middleware is designed to dependably manage the interconnected systems in SDVs, prioritizing safety-critical functions while ensuring seamless integration and adaptability. MotionWise also lets automakers efficiently scale software across car models, streamline safety integration, and easily move or add safety-critical features; all while maintaining a robust safety backbone through a safety-by-design approach.

“This acquisition combines NXP’s automotive portfolio with a leading global player in safety software solutions,” said Jens Hinrichsen, executive vice president and general manager of analog & automotive embedded systems at NXP. “The inclusion of TTTech Auto’s software into the NXP CoreRide solution further strengthens NXP’s automotive value proposition and accelerates the automotive industry’s transformation to software-defined vehicles. NXP CoreRide enables automakers to deploy their best-in-class, differentiated vehicle platforms more efficiently, faster, and safely. Our acquisition of TTTech Auto is the next big step in NXP’s journey to become the leading provider of intelligent edge systems in automotive and Industrial IoT.”

“The emergence of intricately connected and adaptive frameworks in SDVs highlights the need for middleware to tackle challenges in integration, safety and scalability,” said Dirk Linzmeier, chief executive officer of TTTech Auto. “NXP and TTTech Auto both clearly recognize this need and share the same vision for SDV transformation. Together, MotionWise and NXP CoreRide empowers automakers with a robust SDV foundation, ensuring seamless coordination of diverse systems that help automakers deliver innovative features while maintaining reliability and safety at scale.” Stefan Poledna, chief technology officer and co-founder of TTTech Auto, added, “I could not be more excited for our team to join NXP. Together, we are perfectly situated to engage with OEM and Tier one players throughout their system design process.”

For more information on NXP’s automotive solutions, visit

nxp.com/automotive

.

Forward Looking Statements



This document includes forward-looking statements which include statements regarding NXP’s acquisition of TTTech Auto, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after NXP distributes this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors and other cautionary statements included in NXP’s SEC filings. Copies of NXP’s SEC filings are available on NXP’s Investor Relation website,

https://investors.nxp.com

or from the SEC website,

www.sec.gov

.

About NXP Semiconductors



NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's “Brighter Together” approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $13.28 billion in 2023. Find out more at

www.nxp.com

.

NXP and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. All rights reserved. © 2025 NXP B.V

For more information, please contact:

NXP-Corp


NXP-Auto

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S&P Mar'24 "automotive-ecu-market-database" (Cross Domain VDC + ZC)</sub>

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/cbcba617-25a2-46fd-b284-6b73aa0445d0

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.