NXP Semiconductors acquires NPU startup Kinara

NXP Semiconductors has agreed to acquire Kinara, a provider of programmable discrete neural processing units (NPUs). These devices enable a wide range of edge AI applications, including multi-modal generative AI models.

NXP Semiconductors is a semiconductor company that designs and manufactures technology for devices to sense, connect, and act intelligently. Their products are used in many industries, including automotive, consumer, industrial, and networking.

These NPUs are designed to facilitate a wide range of edge AI applications, including multi-modal generative AI models. The acquisition, valued at $307M in an all-cash transaction, is expected to close in the first half of 2025, pending customary closing conditions and regulatory approvals.

This strategic move aims to enhance NXP's processing portfolio by integrating Kinara's advanced NPUs and AI software. The combination is anticipated to drive intelligent system solutions across industrial and automotive edge markets. By incorporating Kinara's technology, NXP plans to deliver high-performance neural network processing capabilities, including advanced generative AI, to create transformative edge use cases. This acquisition establishes a scalable platform for AI-powered edge systems, leveraging NXP's broad portfolio of processing, connectivity, security, and advanced analog solutions alongside Kinara's AI hardware and software.

NXP's acquisition of Kinara signifies a significant step toward strengthening its position in the edge AI market, particularly within industrial and automotive sectors. The integration of Kinara's NPU technology is expected to enhance NXP's ability to offer comprehensive and scalable AI solutions, addressing the growing demand for advanced AI capabilities at the edge.

“The industrial market is going through a transformation, with new innovations like generative AI helping to deliver major improvements in efficiency, sustainability, safety and predictability, and in many instances, unlock new use cases and functionality,” said Rafael Sotomayor, Executive Vice President and General Manager, Secure Connected Edge at NXP.

“Adding Kinara’s AI capabilities to our broad intelligent edge portfolio creates a scalable platform for new classes of AI-powered systems. Together, we can help our customers simplify complexity and accelerate time to market as they create transformative AI systems.”