2025 Jan Hot news 1

NXP announced that it will acquire Austrian automotive software developer TTTech Auto for $625 million in cash. Headquartered in Vienna, Austria, TTTech Auto has established business relationships with many of the leading automotive Oems and is a leader in the innovation of unique safety-critical systems and middleware for software-defined vehicles (SDVS). After the deal closes, TTTech's management team and about 1,100 engineering employees will join NXP's automotive team, NXP said in a statement on Tuesday. The deal is subject to regulatory approval.
TTTech Auto has established business relationships with many leading automotive Oems through its deterministic operating system and time-triggered Ethernet technology. This fits well with NXP's focus on central and domain controller chips. Market research firm S&P says the SDV (System Design verification) market will expand to 45 percent of global vehicle production by 2027, with a compound annual growth rate of 48 percent between 2024 and 2027. This has driven a fundamental shift in the architecture of new vehicles, with NXP launching the CoreRide platform in March last year to address the transition to SDVS, with TTTech Auto as its main partner to port its software to the S32 chip. The NXP CoreRide platform uses NXP's S32 vehicle computing, networking and system power management. The deal adds MotionWise middleware, communications and security technologies to the stack. In addition to TTTech Auto, NXP also acquired U.S.-based SerDes startup AvivaLinks for $242.5 million in cash on Dec. 18, 2024, and expects the acquisition to close in the first half of 2025.
Aviva Links manufactures standards-based asymmetric multi-gigabit serializers (SerDes) for the Automotive SerDes Alliance's (ASA) standard for Interoperable network architecture. NXP's acquisition is expected to contribute to this growth by driving the market away from today's proprietary links towards open standard ASA SerDes connectivity. According to the latest forecast of World Semiconductor Trade Statistics (WSTS), global automotive chips, whose demand has been sluggish since 2022, will usher in the market's long-awaited "moment of recovery" in 2025.
According to WSTS expectations, analog chips, which occupy an important share in the chips required for automobiles, especially electric vehicles (EV), are expected to slowly enter the recovery cycle in 2025 after two consecutive years of weak demand, and MCU demand, another important chip category required for electric vehicles, is expected to recover at a stronger pace on the basis of a slow recovery in 2024. Analog chips play an integral role in a variety of key functional modules and systems for electric vehicles, including power management, battery management, sensor interfaces, audio and video processing, and motor core control systems. With the organization's optimism about the automotive chip market, there is a market view that through a series of recent acquisitions, NXP has not only enhanced its capabilities in the automotive software field, but also accelerated the strategic layout of NXP's automotive hardware and software integration. This move is designed to respond to the coming recovery trend of automotive chip demand and the future development trend of "electric vehicle +AI autonomous driving" and software-defined vehicles, and enhance its competitiveness in the global automotive chip and automotive hardware and software integration market.