NXP Semiconductors NV shares yesterday fell in premarket trading after the company announced a new chief executive officer as part of its quarterly earnings report and warned that tariff threats had created “a very uncertain environment.”
CEO Kurt Sievers, 56, is to retire late this year, the Dutch chipmaker said in a statement on Monday.
Rafael Sotomayor, a current NXP executive, is to assume the role of president immediately — on the way to becoming the new CEO on Oct. 28.
Photo: Reuters
Tariffs announced by US President Donald Trump threaten to add further upheaval to the industry, which has been working through a backlog accumulated after the COVID-19 pandemic.
NXP’s peers, such as STMicroelectronics NV and Infineon Technologies AG, have struggled with weak demand for mature chips used in electric vehicles or smartphones.
NXP said Sievers, who has been CEO since 2020 and has been with the company for three decades, is leaving on good terms with the board. Sotomayor joined the company in 2014 from Broadcom Inc.
The shares tumbled about 8 percent in premarket trading yesterday before New York exchanges opened. They had declined 5.6 percent this year to close at US$196.24 on Monday.
As part of the earnings report, NXP forecast that revenue would decline to US$2.8 billion to US$3 billion in the second quarter. That compares with an average analyst estimate of US$2.86 billion, according to data compiled by Bloomberg.
The company said it has a “cautious optimism” that it can continue to navigate a challenging market.
“We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects,” NXP said.
First-quarter revenue fell 9 percent year-on-year to US$2.84 billion and adjusted diluted earnings per share in the period were US$2.64. Analysts had estimated US$2.83 billion in sales and US$2.60 a share in earnings.
Despite the downturn, NXP invested in acquisitions this year. The company in January agreed to buy Austrian software maker TTTech Auto for US$625 million to develop more solutions for software-defined vehicles.
NXP in February also announced the takeover of Kinara, a developer for processing units enabling artificial intelligence applications, for US$307 million.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
RSS