NXP Semiconductors is in talks to acquire Ambarella, a U.S.-based chip designer known for its AI-enabled imaging processors used in cameras for automotive and security applications, according to a Financial Times report.
Discussions between the two companies are ongoing, and there is no guarantee a deal will be finalized. Multiple media reports noted that other bidders could emerge or negotiations could still collapse.
Ambarella, headquartered in San Francisco, has a market capitalization of roughly $3.3 billion. The company specializes in edge AI chips that process data directly on devices, reducing reliance on cloud-based computing. Its technology is widely used in image-processing semiconductors for security cameras and advanced driver-assistance and autonomous vehicle systems.
For NXP, the potential acquisition would reinforce its automotive semiconductor business, which is projected to account for about half of its expected $15.1 billion revenue this year. The Dutch chipmaker already has deep relationships across global automakers and Tier-1 suppliers, positioning it well to scale Ambarella’s technology within automotive supply chains.
The move comes amid a broader wave of consolidation across the semiconductor industry, as companies position themselves for the next phase of AI-driven growth. Earlier this year, Texas Instruments agreed to acquire Silicon Labs for $7.5 billion, while SoftBank acquired Ampere Computing last year for $6.5 billion.
Unlike some of its peers, NXP has largely stayed away from large-scale acquisitions in recent years. Its most notable deal attempt, Qualcomm’s $47 billion bid for NXP collapsed in 2018 after failing to secure regulatory approval from China.
Shares of Ambarella rose more than 17.5% following news of the talks, while NXP stock fell around 3.3%. NXP shares remain up roughly 11% year-to-date, giving the company a market capitalization of about $62 billion.
Ambarella has also been expanding its commercial footprint. In May 2026, the company announced a long-term partnership with Hanwha that could generate more than $800 million in revenue over time. A potential tie-up with NXP could further accelerate its push into automotive markets by leveraging NXP’s longstanding industry presence.
