Dutch chipmaker NXP Semiconductors is in talks to acquire Ambarella, the US designer of AI-enabled camera and computer-vision chips used heavily in self-driving vehicles, according to a Financial Times report on 31 July.

The potential deal would add Ambarella's edge-AI and vision processors — widely used in dashcams, robotics and automotive driver-assistance systems — to NXP's automotive portfolio. Ambarella, with a market value of around $3.3 billion, has pivoted in recent years from consumer cameras toward the automotive and machine-vision markets.

Reuters reported that NXP shares fell more than 3% following the news, while Ambarella stock rose on the acquisition speculation. Both companies declined to comment, and the FT cautioned that discussions are ongoing and may not result in an agreement.

An acquisition would significantly expand NXP's footprint in software-defined vehicles, radar systems and electrification, and would mark another step in consolidation among chipmakers racing to supply the auto industry's AI-driven transformation.