NXP in talks to buy chip developer Ambarella, FT reports

July 31, 2026 1:06 PM EDT

The NXP Semiconductors logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration

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, ‌which has a ‌market capitalization of $3.25 billion, jumped about 19%, while NXP shares fell ​more than 3%, following the report.

• A potential deal ⁠can 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 declined ⁠a Reuters requests for comment, while Ambarella did ​not immediately respond.

• 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 and Joyjeet ‌Das)



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