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NXP sees flat 2023 despite automotive boost

NXP sees flat 2023 despite automotive boost

Business news |
By Nick Flaherty

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NXP has seen growth in its automotive business this year but is predicting flat results as a result of a drop in its communications business.

The figures for NXP in Q3 2023 were slightly above guidance at $3.43bn, but the full year guidance is flat says Kurt Sievers, President and Chief Executive Officer at NXP.

The midpoint guidance for Q4 is for $3.40bn, down 1%, up to $3.5bn. The midpoint guidance puts the full year figures at  $13.25bn, compared to $13.21bn in 2022 and $11.06bn in 2021 after the Covid-19 pandemic shutdowns.

“NXP delivered quarterly revenue of $3.43 billion, $34 million above the midpoint of guidance. Revenue trends in our Mobile, Industrial & IoT and Automotive end-markets all performed in-line or better than anticipated, while our Communication Infrastructure & Other end market was slightly below our expectations. The combination of our third quarter results, and the mid-point of our fourth quarter guidance indicates revenue for the full year 2023 will be flat versus 2022 in a challenging and cyclical market environment,” said Sievers.

Cash flow from operations was $988 million, with net capex investments of $200m with the company returning “262m in dividends and repurchasing 4306m of shares in its ‘fab-lite’ policy.

The company points to its automotive RISC-V joint venture with Bosch, Infineon, Nordic Semiconductor and Qualcomm Technologies as well as the ESMC 300mm European fab investment with TSMC, Bosch and Infineon in Dresden, Germany.

It is also receiving funding from the 2nd Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT) for the design of 5nm chips for the Software Defined Vehicle, radar and battery management systems in automotive, and Ultra-Wideband as well as artificial intelligence (AI), RISC-V and post-quantum cryptography.

 

Additional information

 

 

 

 

 

 

Q3 2023

Q2 2023

Q3 2022

Q – Q

Y – Y

Automotive

$

1,891

 

$

1,866

 

$

1,804

 

1

%

5

%

Industrial & IoT

$

607

 

$

578

 

$

713

 

5

%

-15

%

Mobile

$

377

 

$

284

 

$

410

 

33

%

-8

%

Comm. Infra. & Other

$

559

 

$

571

 

$

518

 

-2

%

8

%

www.nxp.com

 

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