NXP, a leading Dutch manufacturer of computer chips, has announced that it is acquiring TTTech Auto, an Austrian company, for $625 million. This move aims to bolster NXP’s presence in the automotive sector, where the role of software is rapidly growing in vehicle design and functionality.
NXP, known as the largest producer of chips used in automobiles, is expanding its capabilities by adding TTTech Auto’s expertise in safety-critical software. TTTech Auto specialises in ‘middleware’—a type of software that enables a car’s operating system to smoothly interact with applications, manage updates, and ensure that crucial vehicle functions remain operational even when new features are introduced.
“This acquisition combines NXP’s automotive portfolio with a leading global player in safety software solutions,” said Jens Hinrichsen, NXP’s executive responsible for automotive embedded systems. This deal highlights NXP’s strategy to strengthen its offerings in a market where carmakers are increasingly prioritising software over traditional hardware in vehicle design.
Hinrichsen also noted that the acquisition would help NXP achieve its goal of becoming the “leading provider of intelligent edge systems” in the automotive industry. The importance of software in the automotive space has grown significantly, as more car manufacturers focus on providing advanced digital features and autonomous driving capabilities.
The deal, which is an all-cash transaction, will bring TTTech Auto’s 1,100 employees and its management team under NXP’s automotive division. Based in Vienna, TTTech Auto has built a strong reputation for its work on safety-focused software, which is essential for modern cars that rely on both hardware and software to ensure safety and performance.
Once the acquisition is completed, NXP is expected to gain a significant edge in the development of advanced automotive systems. The growing reliance on software to manage everything from updates to critical car functions makes this acquisition a strategic move as NXP looks to maintain its leadership in the automotive chip market.
This expansion into safety-critical software is also in line with the increasing trend of automakers seeking solutions that merge software with hardware to improve car safety, connectivity, and autonomous capabilities. By joining forces with TTTech Auto, NXP is positioning itself to be at the forefront of these industry changes, making it well-placed to meet the evolving needs of car manufacturers worldwide.
“This acquisition combines NXP’s automotive portfolio with a leading global player in safety software solutions. 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”, said Jens Hinrichsen, executive vice president and general manager of analog & automotive embedded systems at NXP Semiconductors.
“The emergence of intricately connected and adaptive frameworks in SDVs highlights the need for middleware to tackle challenges in integration, safety and scalability. 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,” said Dirk Linzmeier, chief executive officer of TTTech Auto.
“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,” saidStefan Poledna, chief technology officer and co-founder of TTTech Auto.
