NXP enters long-term growth cycle

NXP’s reported Q1 revenue of 2.6 billion dollars, up 2 percent compared to the previous quarter. It’s a sign that the chipmaker is firing at all cylinders since the historical pattern is the opposite: revenue typically decreases sequentially in Q1. Indeed, the latest result is up 27 percent compared to Q1 2020. Compared to the last non-corona-impacted first quarter, ie Q1 2019, it’s up 23 percent.

NXP expects revenue development going into Q2 will be flat. That’s partially because, like in Q1, the Eindhoven-headquartered chipmaker will be supply-constrained. Foundries have been running at full capacity for some time now and NXP just hasn’t been able to order as many chips as it would like. Another reason is NXP’s fabs in Austin, Texas, going offline. The facilities went down in mid-February for about three weeks after a severe winter storm completely shut down the city. The impact of the outages is about 100 million dollars in lost revenue.