NXP “cautiously optimistic” about weathering downturn unscathed

With the still-growing automotive business compensating for sales declines in the Industrial & IoT and Mobile segments, NXP reported better Q1 results than guided. This, along with good omens for the remainder of the year, fuels “cautious optimism” at the chipmaker that it’s “successfully navigating through the cyclical downturn,” says CEO Kurt Sievers.

Overall Q1 2023 revenue was almost flat at 3.1 billion dollars, hiding widely varying results from different business groups. Automotive grew 17 percent and Communications Infrastructure 7 percent. By contrast, consumer-exposed businesses Industrial & Iot and Mobile saw sales drop 26 and 35 percent, respectively.

NXP is guiding a sequential change in Q2 sales in the range of -1 to 6 percent.