NXP’s record year not without challenges

NXP reports record revenue of 13.2 billion dollars in 2022, up 19 percent year-on-year. Automotive was the star of the show, of course, and although the other business units also delivered healthy growth over the entire year, their performance over the last six months was down. It will take some time for them to rebound.

The automotive segment saw revenue increase 25 percent to 1.8 billion dollars over the year. This is partly the result of inflation driving up prices, which NXP passes along to customers without padding its gross margin. Sales growth of hybrid and electric vehicles, carmakers prioritizing premium class vehicles and rapidly increasing semiconductor content of cars also contributed to NXP’s growth in automotive.