"Electronics has clearly become a major differentiator in the automotive market," said Paul Grimme, senior vice president and general manager of Freescale's Transportation and Standard Products group, in a statement.

"This partnership of the two leading automotive IC suppliers is set to better serve our customers and partners by bringing the combined design strengths of Freescale and ST to an ever wider range of automotive applications, from high-end power train to advanced safety and driver-information systems," said Ugo Carena, corporate vice president and general manager of the Automotive Product group of STMicroelectronics.