NXP Semiconductors CEO: Automotive and Industrial Chip Demand Remains Resilient

NXP Semiconductors recently released its Q3 financial report, with total revenue up 20.4% year-on-year and net profit up 42.2% year-on-year. CEO Kurt Sievers said that he carefully views the development prospects of the chip industry in the next few months, pointing out that the market demand is divided into two types: chips for consumer products and chips for automobiles, and demand from consumer electronic products such as game consoles and personal computers. Declining, but demand for automotive and industrial chips remains "resilient".

According to the data, according to NXP’s business division, the Q3 automotive business revenue was 1.804 billion US dollars, a year-on-year increase of 24%, accounting for about 50% of the total revenue; the industrial and IoT business revenue was 713 million US dollars, a year-on-year increase of 17%; mobile devices Business revenue was US$410 million, a year-on-year increase of 19%; communications infrastructure and other business revenue was US$518 million, a year-on-year increase of 14%.

Because of the large proportion of revenue from automotive chips, NXP has avoided the dilemma of the rapid decline in semiconductor demand. Like manufacturers in the automotive market, NXP said there are still some product shortages here. Investors are now focused on how long the auto market can provide a buffer against a broad drop in demand.

"Most of the demand in the chip industry has fallen like a rock, and there is a problem of excess inventory," Schiffer said. But the other part "continues to maintain healthy demand, and supply and demand are still unbalanced."