“It’s a bit of a schizophrenic situation,” Sievers said. “I am still in my seat, fighting customer shortages; while, of course from a macro perspective, you would assume the world is going under.”
NXP generates about half its revenue from the sales of chips used in autos. The Eindhoven, Netherlands, company has posted rapid growth fueled by the increasing use of semiconductors in vehicles. That’s continuing as the supply of the electronic components still can’t meet all of the industry’s orders.
Like many other chipmakers, NXP doesn’t manufacture all of its semiconductors in-house, instead outsourcing production to suppliers such as Taiwan Semiconductor Manufacturing Co. Those foundries are swamped with orders they’re struggling to fill.
NXP, in its statement, cited continued strong demand in the markets for auto, industrial and connected devices.
In the period ended July 3, NXP reported sales increased 28 percent to $3.31 billion. Gross margin was 57.8 percent, minus certain items. The figures beat analysts’ estimates.