On Tuesday, Dutch semiconductor leader NXP announced its intention to acquire TTTech Auto, an Austrian firm focused on safety software for autonomous driving, in an all-cash deal valued at $625 million.
TTTech Auto was established as a spin-off from TTTech Group in 2018, receiving approximately $78 million in investments from notable firms including AUDI, Samsung, and GE Ventures. In 2022, the company secured an additional $285 million, with Aptiv spearheading its Series C funding round.
TTTech Auto collaborates with the automotive sector as it advances into the software-defined vehicle landscape, encompassing both semi- and fully automated technologies. Its premier product, MotionWise, acts as a middleware platform for advanced driver-assistance systems (ADAS) and automated driving systems (ADS). It is designed to facilitate real-time data processing, ensuring seamless interaction among various control systems within a vehicle, including cameras, radars, actuators, and control units. Additionally, it promotes the integration of software from diverse suppliers while adhering to functional safety compliance standards.
For instance, when an automaker aims to enhance or introduce features such as adaptive cruise control or lane-keeping assist, TTTech Auto compiles and processes all pertinent data with minimal latency to guarantee safe steering.
Chips for Every Need
With the rise of AI, Nvidia has emerged as one of the world’s most valuable companies, and similarly, NXP has strategically positioned itself to benefit from the automotive industry’s ongoing transition towards electrification and automation. The company’s market valuation has surged over the past five years, reaching $54 billion.
Founded as a spin-off from Philips in 2006, NXP specialises in semiconductor solutions across various sectors. In the automotive field, it develops chips essential for sensors and cameras that underpin key ADAS functionalities, such as lane assistance, automatic braking, and adaptive cruise control. In March, NXP introduced CoreRide, a platform aimed at assisting automakers in transitioning to software-defined vehicles (SDV), with TTTech Auto participating as an initial software partner.
The acquisition presents significant synergies between NXP and TTTech Auto. While the deal awaits regulatory approval, the entire management and engineering teams from TTTech Auto will be integrated into NXP and will operate under the NXP brand.
