After struggling at the start of the year, NXP saw record revenue in 2021, with 28 percent growth to $11.06bn. This is also up on the 2019 turnover of $8.8bn and $9.4bn in 2018. Profits were also up 43 percent to $6.0bn, reflecting the benefits of the chip shortage.
“2021 was an excellent year for NXP,” said Kurt Sievers, NXP President and Chief Executive Officer. “We experienced significant design win traction across the entire portfolio and especially within the areas of our strategic growth drivers. We continue to see growing customer demand, outstripping supply, as inventory across all end markets remains very lean. Taken together, this underpins our continued confidence of robust growth throughout 2022.”
NXP anticipates revenue will grow 8 to 12 percent over the next three years.
Fourth quarter revenue was $3.04 billion, up 21 percent year-on-year, with profits up 56 percent. Automotive remains the largest area for the company, with $5.5bn turnover, half the business. This was up 44 percent on the previous year.
The Industrial and IoT business was also up 31 percent to $2.4bn, while the mobile chip business was up 13 percent on the year to $1.4bn. The communication infrastructure business was up 3 percent to $1.7bn.
However the position in automotive may be precarious. In response to cancellations at ther start o the pandemic, the company introduced non-cancellable contracts, and various car makers have announced their intention to build their own chip design businesses.
- Profits plummet at NXP
- NXP moves to uncancellable chip contracts
- US chip inventory falls to under 5 days
However NXP has also signed a collaboration with Foxconn and Ford for chips and services. Ford’s new fully networked vehicle architecture with NXP’s vehicle networking processors and the i.MX 8 Series processors.
The company is also looking to its i.MX9 family of applications processor for automotive, smart home, smart building and smart factory applications, adding edge machine learning to anticipate and automate system behaviour.
Related NXP articles
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- Signing up Foxconn as strategic automotive customer
- Ford collaborates on next-gen connected car