NXP Semiconductors is in discussions to acquire chip designer Ambarella, according to a report by the Financial Times citing people familiar with the matter.
The potential transaction would see the automotive and industrial chip giant expand its portfolio into Ambarella's core markets of video processing and artificial intelligence chips for cameras and drones.
Ambarella, which has a market capitalization of approximately $3.
Ambarella, which has a market capitalization of approximately $3.25 billion, saw its shares react to the news.
The reported talks highlight the ongoing consolidation in the semiconductor sector as larger players seek to broaden their capabilities in high-growth areas like AI and computer vision.
NXP, known for its dominance in automotive semiconductors, could leverage Ambarella's technology to strengthen its position in connected vehicle systems and smart infrastructure.
The acquisition would mark a significant strategic move for NXP, diversifying its revenue streams beyond its traditional automotive and industrial base.