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)
