Record sales for chipmaker NXP due to increased demand

Record sales for chipmaker NXP due to increased demand

Dutch chipmaker NXP achieved record sales of 12.2 billion euros last year. In addition, the company made a profit of 2.6 billion euros. The numbers clearly show how much demand has increased since the onset of the Corona crisis: sales have increased by 50 percent in two years.

Headquartered in Eindhoven, the company is one of the most important companies in the global chip industry. NXP operates in more than thirty countries worldwide and employs 34,000 people.

It operates in various industries, but generates by far the largest turnover with chip production for the automotive industry. It accounts for just over 50 percent of sales.

Restrictions ASML

It is unclear to what extent NXP will be affected by the new restrictions on chip machine manufacturer ASML. Last Friday evening, it became clear that the Netherlands, the USA and Japan agreed on new restrictions on the export of chip machines to China. The details of this are not yet known and need to be worked on.

NXP also uses ASML’s chip machines and operates in China. The company has been operating there for over thirty years. The chip maker isn’t commenting on that in its press release regarding quarterly and yearly numbers, but it could be discussed this afternoon as the company discusses the numbers with analysts.

The chipmaker made headlines last week after the chips still ended up in Russia despite sanctions. NXP later emphasized that the company complies with the sanctions rules and does not do business with Russia; If the chips end up in Russia by devious means, they are powerless.

chip shortage

Speaking to NOS last fall, NXP said that the chip shortage that has plagued the industry since the coronavirus crisis is still not over. However, the demand for consumer electronics is declining.

Source: NOS