NXP continues its Covid-19 bounce back

NXP continues its Covid-19 bounce back

Business news |
By Nick Flaherty

Dutch chip designer NXP Semiconductor has posted a strong first half for 2022, benefitting from higher prices from the supply chain issues and stronger demand.

“NXP delivered quarterly revenue of $3.31 billion, an increase of 28 percent year-on-year and above the mid-point of our guidance range,” said Kurt Sievers, President and CEO of NXP in Nijmegen.

“Notwithstanding the clear macro-economic cross currents, NXP continues to perform well. Customer demand within the Auto and Industrial & IoT end-markets continues to exceed our incrementally improving supply, even as we risk-adjust our long term orders. New design win commitments are remarkably strong across our focus end-markets, which underpins confidence that our investments are well aligned with the long-term market requirements,” he said.

“The growth NXP experienced in 2021 was due to a combination of rebounding end market demand from the initial shock and widespread market disruption caused by the emergence of the COVID-19 pandemic in the first half of 2020 and accelerating adoption of the Company’s innovative new products and solutions,” said Sievers in February 2022. “The year-on-year growth was due to higher unit volumes, as well as a higher average selling prices resulting from increases in input costs from NXP’s supplier base, which were passed onto our customers.”

“The growth NXP experienced in 2021 began to clearly emerge at the end of the third quarter of 2020 and has continued to steadily accelerate through the fourth quarter of 2021. Even with the strong growth experienced in 2021, the Company believes customer demand will continue to outpace material supply, resulting in another positive year of growth into 2022,” he said.

Revenue for the second quarter of 2022 was $3.31 billion, up 27.6 percent year-on-year, although the 2021 quarter was hit by the pandemic and supply chain shortages. The company expects to see the next quarter up between 1% and 6%, which shows that there is a significant amount of uncertainty in the market.

It has seen revenue of $12.35bn in the last 12 months with cash flow of $3.38bn and $3.13bn returned to shareholders through dividends and share repurchasing. It had revenue of just over $11bn in 2021, 28.5% on the $8bn in 2020.

Back in June the company launched its MCX portfolio of microcontrollers, bringing together its legacy devices from Freescale and NXP for smart homes, smart factories, smart cities and across many emerging industrial and IoT edge applications.

It also launched two processor families for automotive with the S32Z and S32E families, and signed a deal with contract manufacturer Foxconn to jointly develop platforms for a new generation of smart connected vehicles.

It has also been working closely on the quantum-secure encryption algorithms announced by NIST in the US and developing dedicated technology for smartcards.

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