NXP won’t be able to fulfill all its orders for at least the remainder of this year, CEO Kurt Sievers told investors in a conference call discussing Q1 results. “While our foundry partners have attempted to address our needs, it really hasn’t been enough, and we were supply constrained in quarter one. This supply trend will continue through quarter two. And our current expectation is that we’ll face a tight supply environment for at least the remainder of 2021,” Sievers said.
Nonetheless, NXP is selling – and will be selling – a lot more chips. Compared to the pre-pandemic levels of 2019, the company expects to increase revenue by nearly 20 percent in the first half of this year. In automotive that percentage will be even higher, despite market research firm IHS Markit predicting a drop of 10 percent in car production this year.
NXP reported Q1 revenue of 2.6 billion dollars, up 2 percent sequentially and 27 percent year-on-year, and a net income of 364 million dollars, compared to a loss of 13 million dollars in Q1 2020. The Eindhoven-headquartered chipmaker is expecting flat revenue development going into Q2, but a stronger second half of the year.