NXP in talks to buy chip developer Ambarella, FT reports

July 31 : 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 per cent, while NXP shares fell more than 3 per cent, 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.