NXP Semiconductors acquires TTTech Auto for $625M: a game changer for software defined vehicles

NXP Semiconductors N.V is acquiring TTTech Auto in an all-cash transaction valued at $625 million.

TTTech Auto, based in Vienna, Austria, develops safety-critical systems and middleware for software-defined vehicles (SDVs). 

TTTech Auto has established business relationships with many leading automotive OEMs, empowering them to focus on the driving experience while its solutions optimise performance, safety, integration, and software updates.

The automotive industry is profoundly transforming from conventional hardware-based designs to platform-based software-defined vehicles (SDVs) with increasingly sophisticated, interconnected hardware and software systems. This enables feature upgradeability, data-driven services, and native cloud development. 

In response global automakers need SDV platforms and architectures capable of safely and securely handling the increasing complexity of software integration, bringing scalability and fast time to market.

NXP introduced NXP CoreRide platform in March, 2024 to help automakers swiftly transition to SDVs,  the industry’s first open SDV platform purpose-built to break through hardware and software integration barriers and simplify complexity, scalability, and cost. TTTech Auto augments NXP’s hardware proficiency with added software expertise.

According to Jens Hinrichsen, executive vice president and general manager of analog and automotive embedded systems at NXP,  the inclusion of TTTech Auto’s software into the NXP CoreRide solution accelerates the automotive industry’s transformation to software-defined vehicles. 

“Our acquisition of TTTech Auto is the next big step in NXP’s journey to become the leading provider of intelligent edge systems in automotive and Industrial IoT.”

“The emergence of intricately connected and adaptive frameworks in SDVs highlights the need for middleware to tackle challenges in integration, safety and scalability,” said Dirk Linzmeier, chief executive officer of TTTech Auto. 

“NXP and TTTech Auto both clearly recognise this need and share the same vision for SDV transformation.” 

Pending regulatory approvals, TTTech Auto’s management team, intellectual property, assets, and approximately 1,100 engineering staff will join NXPs automotive team.

 As part of NXP, TTTech Auto will continue serving existing customers and expanding its global footprint under the NXP brand.