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NXP Semiconductors NV Pledges Full Support For Google's "Android Things" Platform

By Anders Bylund - May 18, 2017 at 6:55PM

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This partnership should result in faster development of safer Internet of Things tools, often connected to Google's popular Chromecast and Google Assistant devices.

So NXP Semiconductors (NXPI -2.75%) is waiting for the final regulatory approvals to trigger an avalanche of shares being committed to Qualcomm 's (QCOM -0.76%) long-running tender offer. The pending buyout may have frozen NXP's stock prices just below Qualcomm's firm all-cash offer of $110 per share, but NXP isn't sitting on its hands while the merger drama plays out.

For example, NXP just pledged support for Alphabet 's (GOOG -1.48%) (GOOGL -1.38%) Android Things platform.

The embedded semiconductor specialist will ensure that its Internet of Things products come with full support for Android Things. NXP's official support for this embedded software solution includes everything from the i.MX applications processor to the company's low-power Wi-Fi controllers and security chips. In return, Android Things gives NXP a quick and easy development path for clients who want to build next-generation IoT devices. Furthermore, the data safety relationship does not end when you buy one of these connected technology appliances. Google supplies a constant stream of security updates for Android Things devices.

An Android Device development board, featuring NXP chips.

Brillo Argon is one of NXP's pre-approved development bases for Android Things. Note the plethora of open connectors. Image source: NXP.

Through this platform and NXP's hardware, consumers will be able to access Google Assistant and Chromecast user interfaces for gadgets such as smart home tools, networked home entertainment systems, wearable computing gear, and more. The devices will also enjoy all of Google's work on Android security.

A broad consumer-facing platform will always have more resources pouring into their security challenges than any independent, minor-league solution could hope for. That's a big deal.

NXP's official involvement in the Android Things system should speed up development processes for home electronics specialists with a yen for the Internet of Things. As usual, the company is supplying a range of pre-built hardware frameworks to which each developer can connect their own sensors and additional processing tools. The final products should be shelf-ready very quickly, and built around a recognized set of hardware and software standards. The combination of Android's consumer reach and NXP's IoT know-how should result in many new consumer devices -- perhaps even new types of Internet of Things gadgets.

Most of this will fly under the radar from the consumer's point of view, of course. But NXP investors should notice an uptick in IoT product sales as this partnership matures. I mean, Qualcomm investors will be the ones who benefit from NXP's moves today. But you see my point. NXP keeps chipping away at the IoT market in fair weather or foul, making sure that Qualcomm is acquiring a valuable and sprightly business.

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Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
$2,288.90 (-1.38%) $-32.11
NXP Semiconductors N.V. Stock Quote
NXP Semiconductors N.V.
$176.99 (-2.75%) $-5.00
QUALCOMM Incorporated Stock Quote
QUALCOMM Incorporated
$133.91 (-0.76%) $-1.02
Alphabet Inc. Stock Quote
Alphabet Inc.
$2,295.85 (-1.48%) $-34.46

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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