NXP in talks to buy chip developer Ambarella, FT reports

July 31 (Reuters) - NXP Semiconductors is in talks to buy chip ‌designer Ambarella, the Financial ‌Times reported on Friday, citing people familiar with the ​matter.

Shares of Ambarella, with a market capitalization of $3.25 billion, jumped nearly 17%, while NXP fell over 3% ‌following the ⁠report.

Here are a few details:

• A potential deal could ⁠bolster NXP's capabilities in software-defined vehicles, radar and electrification, as Ambarella ​develops low-power ​AI chips ​and software for ‌edge devices such as cameras, vehicles and robotics.

• Discussions are ongoing and might not lead to a transaction, FT said.

• NXP and Ambarella ‌did not immediately ​respond to Reuters' requests ​for comment.

• ​The development comes after ‌NXP forecast quarterly revenue ​above analysts' ​estimates on Tuesday, signaling strong demand for its chips in ​automotive, industrial ‌and data-center markets.

(Reporting by Juby ​Babu in Mexico City; Editing ​by Vijay Kishore)

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