NXP, a Dutch chipmaker, has recently announced its definitive agreement to acquire TTTech Auto, an Austrian technology firm, in an all-cash transaction valued at $625 million. This strategic move is aimed at strengthening NXP’s presence in the Software-Defined Vehicle (SDV) market.
TTTech Auto specializes in developing middleware that facilitates the integration of automotive operating systems with various applications while ensuring the integrity of critical functions during updates. By acquiring TTTech Auto, NXP aims to complement its existing hardware solutions with expertise in managing complex software systems for automotive safety.
Upon regulatory approval, the acquisition will bring approximately 1,100 engineers, along with TTTech Auto’s intellectual property and assets, into NXP’s automotive division. NXP has assured that TTTech Auto will continue to serve its current customers and expand its presence under the NXP brand.
Jens Hinrichsen, NXP’s executive vice president and general manager of analog & automotive embedded systems, expressed enthusiasm about the acquisition, stating that it combines NXP’s automotive portfolio with a leading player in safety software solutions. He emphasized that the inclusion of TTTech Auto’s software into the NXP CoreRide solution will strengthen NXP’s automotive value proposition and accelerate the industry’s transition to software-defined vehicles.
The automotive industry is currently undergoing a shift towards platform-based SDVs, which offer advanced interconnected hardware and software systems, enabling feature upgradability, data-driven services, and cloud development. The SDV market is projected to achieve a 45% penetration of global auto production by 2027, with a CAGR of 48% from 2024 to 2027.
In March 2024, NXP introduced the NXP CoreRide platform to support car manufacturers in the transition to SDVs. Built on NXP’s S32 vehicle compute, networking, and system power management, the CoreRide platform addresses hardware and software integration challenges, streamlining complexity, scalability, and cost.
The integration of TTTech Auto’s safety and software capabilities will further enhance the benefits of hardware/software integration for NXP CoreRide partners, facilitating SDV development for automakers. Dirk Linzmeier, CEO of TTTech Auto, highlighted the importance of middleware in addressing integration, safety, and scalability challenges in SDVs, emphasizing the shared vision of NXP and TTTech Auto in driving SDV transformation.
This acquisition marks a significant step in NXP’s journey towards becoming a leading provider of intelligent edge systems in the automotive and Industrial IoT sectors. The collaboration between NXP and TTTech Auto is expected to empower automakers with a robust foundation for SDVs, enabling the seamless coordination of diverse systems to deliver innovative features while ensuring reliability and safety at scale.
