The automotive and industrial Internet of Things are two major growth drivers for NXP Semiconductors NV in the next three years, despite the US’ tightening curbs on semiconductor exports to China, the world’s second-largest car chip supplier said yesterday.
The company expects the two segments to see business grow at between 8 and 12 percent from next year to 2027, NXP executive vice president and chief sales officer Ron Martino said at a media briefing in Taipei.
Martino attributed the growth mainly to an increase in semiconductor contents in cars, though the electric vehicle (EV) market is slowing and uncertainty about the world economy abounds, he said.
Photo on courtesy of NXP Semiconductors NV
Asked about what the US’ latest semiconductor export restrictions to China imply for the Dutch company, Martino said that NXP provides services in many countries and regions around the world, and it works to comply with all regulatory requirements placed on the company.
“We have been managing this for many years, very effectively, and we will continue to manage it as different regulatory requirements are applied to NXP,” Martino said.
“We continue to see a very healthy business. We continue to see that we work well together across all regions, with all parties,” he added.
China was the biggest market for NXP last year, representing 33 percent of the company’s total revenue.
The Asia-Pacific market, excluding China, came second with a 28 percent share.
In Taiwan, NXP has formed strong partnerships with Hon Hai Precision Industry Co (鴻海精密) and Foxtron Vehicles Technologies Co (鴻華先進) to introduce at least four EV models in a very short period of time, Martino said.
That is because NXP can bring its new technologies to the market faster in about one to two years, compared with a longer cycle of three to five years, he said.
Aside from Taiwan, such short development cycles only occur in some innovative and disruptive companies in the US or China, he said.
In related news, Hon Hai yesterday reported revenue last month grew 3.47 percent from a year earlier to NT$672.59 billion (US$20.73 billion), benefiting from strong demand for artificial intelligence servers and related components as well as new notebook computers.
“The second half of the year is traditionally the peak season for the information and communication technology industry, so operations are expected to gradually gain momentum quarter by quarter,” Hon Hai said in a statement.
Revenue this quarter is expected to “show significant growth on both a quarterly and yearly basis,” it said.
In the first 11 months, the company accumulated NT$6.21 trillion in revenue, an increase of 8.87 percent from NT$5.7 trillion in the same period last year, Hon Hai said.
Hon Hai, a major assembler of iPhones and AI servers powered by Nvidia Corp's chips, expected revenue this year to grow "significantly" from last year to reach an all-time high.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
RSS