NXP has invested some 100 million euros in its Nijmegen fab to purchase additional equipment and hire additional staff. The number of permanent contracts there has risen from 1435 to 1500 last year, and will grow to 1600 this year, reports De Gelderlander (link in Dutch). The Eindhoven-based company is expanding its in-house manufacturing capacity in response to the global chip shortage, executive director Jean Schreurs of NXP Netherlands told Dutch media. “We’re currently investing 10 percent of our sales. The typical investment level is 6-7 percent,” he said in FD (link in Dutch).
NXP is effectively sold out for the rest of this year, meaning that “certainly in certain technologies, demand will continue to outstrip supply going into next year,” CEO Kurt Sievers told investors during a conference call discussing Q1 results. His statement reflects recent research from Gartner, which identifies shortages easing in the PC and smartphone end-markets, while in automotive, restricted supply will extend into 2023. The Dutch chipmaker is among the largest automotive IC suppliers in the world.
NXP posted a revenue of 3.14 billion dollars in Q1 2022, up 22 percent year-on-year. Operating income came in at 1.1 billion, an increase of 41 percent compared to the same period last year.