Dutch chip maker NXP is taking over American peer Freescale Semiconductor for almost €10.5bn.

The new company will be worth some €40bn, with annual turnover of more than $10bn. The combined company will be industry leader within the auto and industrial semiconductor markets, the companies said in a joint statement.

Freescale also has its chips in consumer products such as Amazon’s (AMZN.O) Kindle e-reader, Reuters says.

Freescale originated in the Motorola group while NXP is the former Philips semiconductor arm. It was split off and sold to a private equity company 10 years ago. Two years ago it was floated on the stock exchange.

NXP is active in 25 countries with a workforce of 25,000. It booked turnover of over €5bn in 2014.

Under the terms of the agreement, Freescale shareholders will receive $6.25 in cash and 0.3521 of an NXP ordinary share for each Freescale common share held at the close of the transaction. The companies expect to round off the deal in the second half of this year.