Highlights:

  • The deal focuses on expanding NXP’s Industrial and IoT group, which includes edge computing chips.
  • NXP says acquiring Kinara will enable scalable AI platforms from TinyML to generative AI by integrating its NPUs with NXP’s processors, connectivity, and security software.

Dutch chipmaker NXP Semiconductors N.V. has acquired Kinara Inc., for USD 307 million. Kinara is a California-based startup specializing in neural processing units for AI workloads at the network edge.

The latest deal follows NXP’s USD 625 million acquisition of autonomous vehicle software firm TTTech Auto AG last month, which came just three weeks after its USD 242.5 million purchase of automotive connectivity specialist Aviva Links Inc.

While the first two acquisitions aimed to strengthen NXP’s dominant automotive chip segment, the latest deal focuses on expanding its Industrial and IoT group, which includes edge computing chips.

While NXP has largely missed the AI boom that propelled Nvidia into one of the world’s most valuable companies, its prospects at the network edge could be different. NPUs like Kinara’s are crucial for AI workloads in edge devices such as smart cameras and drones.

NXP could use a boost, as its latest acquisition comes just a week after reporting a decline in revenue across all four major business segments—automotive, mobile, industrial and IoT, and communications infrastructure. Adding to the challenge, its first-quarter revenue forecast of USD 2.725 billion to USD 2.925 billion falls short of Wall Street’s USD 2.92 billion target at the midpoint.

The disappointing results add to a series of underwhelming quarters, raising doubts about NXP’s chip business diversification efforts. Meanwhile, reports suggest the company may soon lay off up to 1,800 employees.

The impact of Kinara on NXP’s bottom line remains uncertain, but the acquisition does provide access to promising edge AI products. Kinara’s key products include the Ara-1 NPU, built for advanced AI inference at the edge, and the Ara-2 NPU, a faster version capable of up to 40 trillion operations per second.

Kinara is already a partner of NXP, which should facilitate a smooth and swift integration of its chips into NXP’s platforms once the acquisition is finalized, likely in the first half of the year. In fact, the companies plan to showcase their first integrated products next month at Embedded World 2025 in Nuremberg, Germany.

NXP stated that acquiring Kinara will enable it to offer “complete and scalable AI platforms, from TinyML to generative AI” by integrating Kinara’s discrete NPUs with its own processors, connectivity solutions, and security software.

Rafael Sotomayor, NXP’s Executive Vice President and General Manager of Secure Connected Edge, stated that generative AI can significantly enhance efficiency, sustainability, safety, and predictability in industrial markets.

He said, “Adding Kinara’s AI capabilities to our broad intelligent edge portfolio creates a scalable platform for new classes of AI-powered systems.”