Qualcomm To Buy NXP For $39 Billion

Qualcomm announced that it would be paying $39 billion to buy NXP semiconductor in order for it to expand to the automotive industry.

By acquiring NXP Qualcomm is seeking to diversify its business as sales of smartphones using its chips cool in markets. NXP is the world’s largest developer of chips for automobiles, buying NXP allows Qualcomm a key supplier to companies looking to build smart vehicles.

This deal for NXP semiconductors NV, is the biggest to date in the semiconductor industry, puts the spotlight on Qualcomm Chief  Executive Steve Mollenkopf, who starded at the company he now runs designing the unseen chips used in mobile phones.

Qualcomm paid $110 per sharefor the Dutch Owned Company and the deal is expected to clode in 2017. Qualcomm shares rose 2.8% to$70.09, NXP shares ended up 0.4% to $99.08.

The deal will give Qualcomm a greater foothold in the emerging market for technology that will power self-driving cars, represents a growth space compared to the cultured market for smartphones and other mobile devices.