NXP Semiconductors N.V. said today it has entered into an agreement to buy an Austrian startup called TTTech Auto AG, which builds software systems to ensure the safety of autonomous vehicles, for $625 million in cash.

TTTech Auto was spun out of TTTech Group in 2018 when it raised $78 million in funding from backers including Audi AG, Samsung Electronics Co. Ltd. and GE Ventures. It then announced an additional $285 million in funding in a 2022 round led by Aptiv.

The startup’s flagship product is known as MotionWise, and it’s described as a “middleware” platform that aims to enhance the safety of automated driving systems and advanced driver-assistance systems. It does this by processing data in real-time to ensure essential information flows between the vehicle’s various control systems, including cameras, radars, lidar, actuators and control units.

MotionWise boasts multiple software integrations with third-party suppliers, and it ensures that every one of these systems meets the highest standards for functional safety compliance.

The software can be thought of as a kind of guardian for autonomous vehicle safety. So, if a carmaker wants to improve features related to its adaptive cruise control or lane-keeping assist mechanisms, TTTech Auto will crunch all of the data generated by those systems, ensuring it is processed without any latency, so the car can continue to drive safely.

The acquisition looks to be a good fit for NXP. Just as Nvidia Corp. has emerged to dominate the artificial intelligence industry, the Dutch semiconductor firm has achieved a similar status within the automotive sector. Its market capitalization has doubled in the last five years to more than $54 billion, and it looks well set to continue growing amid the automotive industry’s shift towards more automation.

NXP manufactures a number of specialized chips for autonomous vehicles, including the processors that power the cameras and sensors that sit at the heart of modern ADAS systems. Moreover, last year saw NXP launch a new software platform called CoreRide, which is aimed at automotive companies looking to transition to building software-defined vehicles. TTTech Auto signed on as one of NXP’s first software partners for CoreRide.

NXP’s executive vice president and general manager of analog & automotive embedded systems Jens Hinrichsen said the inclusion of TTTech Auto’s software in the CoreRide platform can help to accelerate the industry-wide shift to software-defined vehicles.

“NXP CoreRide enables automakers to deploy their best-in-class, differentiated vehicle platforms more efficiently, faster, and safely,” he said. “

The acquisition is subject to regulatory approval, but NXP doesn’t envisage any problems and expects the deal to close later this year. When it does, TTTech Auto’s entire management and engineering teams will join NXP, where they will continue to serve existing customers and expand under the NXP brand.

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