NXP's automotive business delivers positive FY 2023 results
Netherlands-based NXP Semiconductors has reported 4Q results above analyst estimates, thanks largely to strong automotive chip sales.
NXP delivered full-year 2023 revenue of USD 13.28 billion, an increase of 1% year-on-year. In the fourth quarter, revenue was USD 3.42 billion, an increase of 3% over 2023. Much of this was due to the firm's automotive chip business, which saw revenue grow 5% to USD 1.90 billion in Q4 from a year earlier. This accounted for 56% of NXP's overall revenue in 2023.
Other sectors performed less well. The Industrial and IoT segment reported sales of USD 2,351 million, a decline of 13% from USD 2,713 million. Mobile sales fell 17% to USD 1,327 million. However communications Infrastructure posted sales of USD 2,114 million, a 5% increase.
“In review, NXP delivered solid results throughout 2023, reflecting strong execution, consistent gross margin, and healthy free cash flow generation despite a challenging semiconductor market environment. We are navigating a soft landing by managing what is in our control, especially limiting over shipment of products to customers,” said Kurt Sievers, NXP President and Chief Executive Officer.
