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NXP Accelerates the Transformation to Software-Defined Vehicles (SDV) with Agreement to Acquire TTTech Auto
NXPINXP(NXPI) Newsfilter·2025-01-07 08:30

Acquisition Details - NXP Semiconductors has entered into a definitive agreement to acquire TTTech Auto in an all-cash transaction valued at 625million[1]−TTTechAuto,basedinVienna,Austria,isaleaderininnovatingsafety−criticalsystemsandmiddlewareforsoftware−definedvehicles(SDVs)[2]−TheacquisitionincludesTTTechAuto′smanagementteam,intellectualproperty,assets,andapproximately1,100engineeringstaff,whowilljoinNXP′sautomotiveteam[3]IndustryTransformation−Theautomotiveindustryisshiftingfromconventionalhardware−baseddesignstoplatform−basedSDVs,withtheSDVmarketexpectedtoreach45625 million [1] - TTTech Auto, based in Vienna, Austria, is a leader in innovating safety-critical systems and middleware for software-defined vehicles (SDVs) [2] - The acquisition includes TTTech Auto's management team, intellectual property, assets, and approximately 1,100 engineering staff, who will join NXP's automotive team [3] Industry Transformation - The automotive industry is shifting from conventional hardware-based designs to platform-based SDVs, with the SDV market expected to reach 45% penetration of global auto production by 2027, reflecting a 48% CAGR between 2024 and 2027 [4] - Global automakers require new SDV platforms and architectures to handle the increasing complexity of software integration, scalability, and faster time to market [5] Strategic Integration - NXP introduced its NXP CoreRide platform in March 2024 to address the SDV market opportunity, featuring S32 vehicle compute, networking, and system power management [6] - TTTech Auto's MotionWise middleware platform complements NXP CoreRide, enabling automakers to reduce complexity, maximize system performance, and shorten time to market [8][10] - The combination of NXP CoreRide and TTTech Auto's MotionWise will strengthen hardware/software integration, streamline SDV development, and enhance safety-critical functions [7][8] Leadership and Vision - The acquisition aligns with NXP's strategy to become the leading provider of intelligent edge systems in automotive and Industrial IoT [10] - TTTech Auto's CEO and CTO emphasized the shared vision with NXP for SDV transformation, highlighting the potential for seamless coordination of diverse systems and innovative features [11] Company Background - NXP Semiconductors is a global leader in automotive processing and networking, with operations in over 30 countries and revenue of 13.28 billion in 2023 [13]