AMSTERDAM : Dutch computer chip maker NXP said on Tuesday it has agreed to buy Austria's TTTech Auto for $625 million, to strengthen its automotive operations.

NXP is the biggest maker of chips for cars, while TTTech Auto makes safety-focused 'middleware' - software that helps a car's operating system integrate with applications, and roll out updates, while ensuring that critical functions are not affected.

This acquisition combines NXP’s automotive portfolio with a leading global player in safety software solutions,” said NXP executive Jens Hinrichsen in a statement.

The company said the move was aimed at strengthening NXP's offerings as its carmaker customers increasingly view software, rather than hardware, as determining a vehicle's design.

Hinrichsen, the general manager of automotive embedded systems at NXP, said the buy would help the company become the "leading provider of intelligent edge systems" in cars.

If the all-cash deal is approved, Vienna-based TTTech, its management and 1,100 employees will join NXP's automotive arm.