NXP Semiconductors Acquires Edge AI Pioneer Kinara for $307 Million

NXP buys Kinara to power AI workloads at the network edge - SiliconANGLE

The Dutch chipmaker NXP Semiconductors N.V. has extended its spending spree by splurging $307 million on a deal to buy Kinara Inc., a California-based startup that develops neural processing units for artificial intelligence workloads at the network edge. Today's deal comes just over a month after NXP splashed out $625 million to acquire the autonomous vehicle software company TTTech Auto AG, which was announced just three weeks after it spent $242.5 million on the automotive connectivity systems maker Aviva Links Inc. The first two acquisitions were clearly designed to enhance NXP's largest automotive chip business segment, but today's deal is more about growing its Industrial & IoT group, which encompasses computer chips for the edge. While NXP has largely missed the AI boat that has helped Nvidia Corp. to become one of the world's most valuable companies, it might be a different story at the network edge. Kinara's NPUs are seen as essential for AI workloads in devices such as smart cameras and drones, which operate at the edge of the network. NXP's business certainly needs a boost. Today's acquisition comes just a week after it announced its fourth-quarter financial results, where it saw revenue decline across all four of its major business segments, including automotive, mobile, Industrial and IoT and its communications, infrastructure and other division. To make matters worse, NXP also forecast first-quarter revenue of between $2.725 billion and $2.925 billion, with the midpoint being some way short of Wall Street's $2.92 billion target The poor results extended a string of less-than-impressive quarters that call into question NXP's efforts to diversify its chip business, and stories have been circulating that the chipmaker could be about to lay off as many as 1,800 employees. It remains to be seen what kind of impact Kinara will have on NXP's bottom line, but the deal does at least give the company access to some viable edge AI products. Kinara's flagship processors include the Ara-1 NPU, which is designed to handle advanced AI inference at the edge, and the Ara-2 NPU, which is a speedier version of that chip that maxes out at 40 Trillions Operations Per Second. Kinara also happens to be an existing partner of NXPs, so that should ensure the speedy integration of its chips with NXP's platforms once the acquisition closes, likely in the first half of this year. Indeed, the two companies said they will show off their first integrated products next month at Embedded World 2025 in Nuremberg, Germany, next month. According to NXP, the acquisition of Kinara will help it to provide "complete and scalable AI platforms, from TinyML to generative AI" by combining that company's discrete NPUs with its own portfolio of processors, connectivity and security software. NXP's executive vice president and general manager of Secure Connected Edge Rafael Sotomayor said generative AI can deliver major improvements in efficiency, sustainability, safety and predictability in industrial markets. "Adding Kinara's AI capabilities to our broad intelligent edge portfolio creates a scalable platform for new classes of AI-powered systems," he said. "Together, we can help our customers simplify complexity and accelerate time to market as they create transformative AI systems."

NXP Semiconductors to Acquire Kinara for USD 307 Million, Expanding Edge AI Capabilities

NXP to integrate Kinara's AI software into its eIQ AI/ML development environment. NXP Semiconductors (NXP) has announced a definitive agreement to acquire Kinara, a maker of neural processing units (NPUs) for edge artificial intelligence (AI) applications, in an all-cash transaction valued at USD 307 million. The acquisition is expected to close in the first half of 2025, pending regulatory approvals, the Dutch chipmaker said on Monday. Also Read: Synaptics and Google Collaborate to Advance Edge AI for IoT Kinara offers NPUs and comprehensive software enablement that deliver energy-efficient AI performance across a range of neural networks, including conventional AI, as well as generative AI, to address the rapidly growing AI needs of industrial and automotive markets. NXP said the acquisition will enhance and strengthen its ability to provide complete and scalable AI platforms, from TinyML to generative AI, by bringing discrete NPUs and robust AI software to NXP's portfolio of processors, connectivity, security, and advanced analog solutions. "As existing partners, Kinara and NXP make it easy to pair Kinara's NPUs with NXP's industry-leading portfolio of industrial and IoT processors. Together, the companies will create tighter integration of solutions to deliver scalable AI platforms for a variety of industrial and automotive AI inference needs," the companies said in a joint statement. Kinara's discrete NPUs, including the Ara-1 and the Ara-2, support emerging AI applications in vision, voice, gesture, and a variety of other generative AI-powered multi-modal implementations. Both devices feature an architecture that enables mapping of the inference graphs for execution on Kinara's programmable proprietary neural processing units for maximizing edge AI performance. Ara-1 is the first generation discrete NPU, capable of advanced AI inferencing at the edge. Ara-2, capable of up to 40 TOPS (Tera Operations Per Second), the second generation NPU, is optimised for achieving system-level high performance for generative AI. The Ara-1 and Ara-2 NPUs can be easily integrated with embedded systems to enhance their AI capabilities. Kinara's AI software portfolio, which includes extensive model libraries and model optimisation tools, will be integrated into NXP's eIQ AI/ML software development environment to enable customers to quickly and easily create end-to-end AI systems. Also Read: Synopsys and SiMa.ai Partner to Accelerate Development of Automotive Edge AI Solution "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."

NXP to buy edge AI chipmaker Kinara in $307m deal

The Netherlands-based semiconductor giant will utilise the start-up's NPUs to better deliver scalable AI platforms. NXP Semiconductors, the Dutch company that manufactures and designs chips, has agreed to acquire Kinara, which produces programmable discrete neural processing units (NPUs). The all-cash deal valued at $307m is expected to close in the first half of 2025, subject to customary closing conditions and regulatory clearance. Also known as AI accelerators, NPUs are specialised pieces of hardware that speed up the computations needed for AI models to work. They are designed to mimic the processing function of the human brain. Kinara's NPUs enable a wide range of edge AI applications, including multi-modal generative AI models. NXP will use Kinara's hardware and software to better deliver scalable AI platforms to its customers. Edge AI refers to AI systems that run on local devices, such as smartphones, sensors or drones, rather than on cloud servers. Edge AI can offer several advantages, such as faster processing, lower latency, reduced bandwidth and enhanced privacy and security. Headquarters in California, Kinara claims its NPUs are "industry leaders" in performance and power efficiency and feature programmability that ensures adaptability as AI algorithms continue to evolve. The start-up also provides a software development kit enabling customers to optimise AI model performance and streamline the deployment. Kinara and NXP are already existing partners, meaning it will be easy to pair Kinara's NPUs with NXP's portfolio of industrial and IoT processors. NXP's Rafael Sotomayor said adding Kinara's AI capabilities to the Dutch company's portfolio creates "a scalable platform for new classes of AI-powered systems". "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," he said. "Together, we can help our customers simplify complexity and accelerate time to market as they create transformative AI systems." Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

NXP Inks $307 Million Deal for AI Processor Company

NXP Semiconductors will buy Kinara for $307 million in cash, advancing its artificial intelligence capabilities. The Netherlands-based semiconductor company said Monday that Kinara's products will enable a wide range of edge AI applications, including multi-modal generative AI models. NXP and Kinara have previously partnered, which will facilitate the combination of their portfolios. Together, the companies will be able to deliver scalable AI platforms for a variety of industrial- and automotive-AI inference needs, NXP said. The deal is expected to close during the first half of the year, subject to customary closing conditions and regulatory requirements. California-based Kinara's neural processing units and comprehensive software will deliver energy-efficient AI performance across a range of networks, including conventional- and generative-AI, according to NXP. The purchase will help NXP address the rapidly-growing AI needs of industrial and automotive markets. It additionally comes at what NXP's General Manager of Secure Connected Edge, Rafael Sotomayor, called a transformative time, marked by new innovations such as generative AI helping to deliver improvements in efficiency, sustainability, predictability and functionality. "Together, we can help our customers simplify complexity and accelerate time to market as they create transformative AI systems," Sotomayor said.

NXP Agrees to Acquire Edge AI Pioneer Kinara to Redefine the Intelligent Edge - NXP Semiconductors (NASDAQ:NXPI)

Enhances NXP's leading processing portfolio with cutting edge NPUs and AI software, driving intelligent system solutions across the industrial and automotive edge markets.Delivers high-performance neural network processing with advanced generative AI to create transformative edge use cases.Establishes a scalable platform for AI-powered edge systems, combining NXP's broad portfolio of processing, connectivity, security, and advanced analog solutions, with Kinara's AI hardware and software. EINDHOVEN, the Netherlands, Feb. 10, 2025 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. NXPI today announced it has entered into a definitive agreement to acquire Kinara, Inc., an industry leader in high performance, energy-efficient and programmable discrete neural processing units (NPUs). These devices enable a wide range of edge AI applications, including multi-modal generative AI models. The acquisition will be an all-cash transaction valued at $307 million and is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory clearances. The future of intelligent systems will require secure, cost-effective and energy efficient AI processing at the edge. As a result, the edge AI processing market is growing rapidly. Advanced AI at the edge enables critical decisions to be made locally and independently from the cloud, leading to faster responses, improved data privacy, and reduced costs. Kinara's innovative NPUs and comprehensive software enablement deliver energy-efficient AI performance across a range of neural networks, including conventional AI, as well as generative AI, to address the rapidly growing AI needs of industrial and automotive markets. The acquisition will enhance and strengthen NXP's ability to provide complete and scalable AI platforms, from TinyML to generative AI, by bringing discrete NPUs and robust AI software to NXP's portfolio of processors, connectivity, security, and advanced analog solutions. As existing partners, Kinara and NXP make it easy to pair Kinara's NPUs with NXP's industry-leading portfolio of industrial and IoT processors. Together, the companies will create tighter integration of solutions to deliver scalable AI platforms for a variety of industrial and automotive AI inference needs. "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." Advancing Edge AI Innovation with Kinara Discrete NPUs Kinara's discrete NPUs, including the Ara-1 and Ara-2, are among the industry leaders in performance and power efficiency. This makes them the preferred solution for emerging AI applications in vision, voice, gesture, and a variety of other generative AI-powered multi-modal implementations. Both devices feature an innovative architecture that enables mapping of the inference graphs for efficient execution on Kinara's programmable proprietary neural processing units for maximizing edge AI performance. This programmability ensures adaptability as AI algorithms continue to evolve from CNNs to generative AI and new approaches such as agentic AI in the future. Ara-1 is the first generation discrete NPU, capable of advanced AI inferencing at the edge. Ara-2, capable of up to 40 TOPS (Tera Operations Per Second), the second generation NPU, is optimized for achieving system-level high performance for generative AI. The Ara-1 and Ara-2 NPUs can be easily integrated with embedded systems to enhance their AI capabilities, including upgrading existing in-field systems. Kinara also provides a complete software development kit enabling customers to optimize AI model performance and streamline the deployment. Kinara's AI software portfolio includes extensive model libraries and model optimization tools, which will be integrated into NXP's eIQ AI/ML software development environment to enable customers to quickly and easily create end-to-end AI systems. Embedded World 2025 The combined innovations of NXP and Kinara will be on display at Embedded World 2025 in Nuremberg. For more information, visit NXP.com/EmbeddedWorld or visit NXP's Booth #4A-222. This document includes forward-looking statements which include statements regarding NXP's acquisition of Kinara, Inc. as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after NXP distributes this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors and other cautionary statements included in NXP's SEC filings. Copies of NXP's SEC filings are available on NXP's Investor Relation website, https://investors.nxp.com or from the SEC website, www.sec.gov. About NXP Semiconductors NXP Semiconductors N.V. NXPI is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.61 billion in 2024. Find out more at www.nxp.com. NXP, eIQ and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. All rights reserved. © 2025 NXP B.V For more information, please contact: Americas & EuropeGreater China / Asia Phoebe Francis          Ming YueTel: +1 737-274-8177Tel: +86 21 2205 2690Email: phoebe.francis@nxp.comEmail: ming.yue@nxp.com A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/27fb23b7-451d-40a6-906f-9935570a1b44 NXPINXP Semiconductors NV$212.00-0.44%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs