Market conditions are improving faster than NXP anticipated, the Eindhoven-based company reports in a Q3 financial performance update. “Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets,” said CEO Kurt Siever. NXP expected Q3 revenue to be about 2.0 billion dollars, but has raised that forecast to almost 2.3 billion dollars. That would be on par with Q3 2019 and represent a sequential increase of 25 percent.
Car factories and their suppliers massively scaled down their operations during the first wave of the corona pandemic, causing NXP’s automotive business to take a dose dive. The chipmaker’s biggest division saw revenue drop 32 percent sequentially and 35 percent year-on-year in the second quarter. At the end of July, the company already reported seeing signs of improvement, but the recovery turns out to be more swift than anticipated.
NXP will report full Q3 results on 26 October.