NXP Semiconductors is acquiring Kinara. Kinara is a California-based startup that develops neural processors (NPUs) for AI workloads at the edge of the network.
The acquisition, worth €297 million, will be paid entirely in cash and is expected to close in the first half of 2025. This is subject to the usual approval procedures.
Third acquisition in a short time
This deal comes just over a month after NXP paid €605 million to acquire autonomous vehicle software company TTTech Auto AG. That purchase was announced just three weeks after the acquisition of Aviva Links. This is a manufacturer of connectivity systems for the automotive industry. For this, NXP paid 235.5 million euros.
The first two acquisitions were clearly intended to strengthen NXP’s largest segment, the automotive chip business. The new deal focuses more on growing the Industrial & IoT division. That includes computer chips for edge applications.
Although NXP partly missed out on the AI revolution that made Nvidia one of the world’s most valuable companies, that could turn out differently at the edge. NPUs like Kinara’s are seen as essential for AI workloads in devices such as smart cameras and drones, which operate at the edge of the network.
Intelligent systems of the future require secure, cost-efficient and energy-efficient AI processing at the edge, NXP writes in a statement. As a result, the market for edge AI processing is growing rapidly. Advanced AI at the edge enables critical decisions to be made locally and independent of the cloud, leading to faster responses, improved data privacy and lower costs.
Scalable AI solutions
Kinara’s NPUs and comprehensive software support energy-efficient AI performance for various neural networks ranging from conventional AI to generative AI. This enables NXP to further strengthen and expand its range of AI platforms, from TinyML to generative AI. Integrating discrete NPUs and robust AI software into NXP’s portfolio of processors, connectivity, security and analog solutions enables a complete and scalable AI solution.
As existing partners, Kinara and NXP effortlessly combine Kinara’s NPUs with NXP’s industrial and IoT processors. NXP believes the acquisition will further strengthen solution integration and deliver scalable AI platforms for a variety of industrial and automotive AI applications.
Setback results
The Kinara acquisition comes just a week after the company announced fourth-quarter financial results, in which it reported revenue declines in all of its four major business segments: automotive, mobile devices, industrial and IoT solutions, and communications and infrastructure products. Moreover, NXP predicted sales between 2.64 billion euros and 2.84 billion euros for the first quarter, which is below the stock market’s 2.83 billion euros at midpoint.