NXP in talks to buy chip developer Ambarella, FT reports
NXP in talks to buy chip developer Ambarella, FT reports July 31 (Reuters) - NXP Semiconductors NXPI.O is in talks to buy chip designer Ambarella AMBA.O, 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)
((Juby.Babu@thomsonreuters.com;))
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