July 31 (Reuters) – NXP Semiconductors is in talks to buy chip designer Ambarella, 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.
Here are a few details:
• 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.
(Reporting by Juby Babu in Mexico City; Editing by Vijay Kishore)
