NXP Semiconductors posts 0.4% drop in revenue to $3.3 bn

Chipmaker NXP Semiconductors has reported revenue of $3.30 billion (–0.4 percent) with operating margin of 28.4 percent in the second quarter ended July 2, 2023.
NXP Semiconductors at a trade eventNXP Semiconductors has generated revenue of $1,866 million (+9 percent) from Automotive; $578 million (–19 percent) from Industrial & IoT; $284 million from Mobile; $571 million (+15 percent) from Communications Infrastructure & Others in Q2 2023.

The Eindhoven, Netherlands-based NXP Semiconductors forecast third-quarter revenue in the range of $3.30 billion to $3.50 billion.

NXP Semiconductors is betting that demand from automakers ramping up production will cushion the hit from a weak consumer electronics market.

Growing electrification of cars and the use of advanced driver-assistance systems have kept demand for automotive chips steady, helping NXP, which made over half of its revenue from that sector last year.

Automakers struggled to get their hands on key components during the pandemic, but are now finding supply more readily available after global chip shortages eased.

“We see continued strength in our automotive, core-industrial and communications infrastructure businesses,” said CEO Kurt Sievers. Revenue in those segments rose in the second quarter on a sequential basis.

Still, a downturn in the rest of the semiconductor industry after a drastic drop in demand for goods from TVs to smartphones has pressured all chipmakers, including NXP.

Moreover, the United States’ curbs on exports to China have continued to escalate, with both sides bringing in new restrictions.

NXP, which had earlier said it expects no material impact from China’s export curbs on certain gallium and germanium products, makes about 36 percent of its revenue from the region and uses the metals in chips for the auto and communications sectors.