Dutch chipmaker NXP Semiconductors NV has succeeded where other European chipmakers have struggled by focusing on products for the auto industry and mobile payments.

NXP’s $11.8 billion acquisition of Austin, Texas-based Freescale Semiconductor Ltd., announced today, will make the combined company a close second to Texas Instruments Inc. in making chips that turn everyday items into connected devices. The deal is the biggest in almost nine years for the chip industry, since the last time Freescale was acquired.

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