Sievers last call

The automotive chip industry is experiencing a positive shift, according to NXP Semiconductor CEO Kurt Sievers in his recent discussion with analysts before his departure. There has been a significant change for the 1100 engineers acquired with TTTech Automotive, who are now integrated into NXP. Rafael Sotomayor is set to take over as CEO and President on October 28, 2025.

NXP witnessed a turnaround in revenues following a challenging period with high chip inventories, particularly in the automotive sector. Sievers noted, “Our revenue exceeded expectations, reflecting positive cyclical trends. NXP reported revenue of $2.93 billion this quarter, a 6% decrease year-on-year.”

Regarding direct sales, NXP continues to assist Western Tier 1 automotive customers in managing their inventory. Sievers mentioned, “We believe Tier 1 customers are either normalizing their inventory levels or are close to doing so.” The company anticipates third-quarter revenue to reach $3.15 billion, down 3% from the same period in 2024 but up 8% sequentially.

Bill Betz, the chief financial officer, expressed optimism about a cyclical recovery, stating, “We are beginning to consolidate our legacy factories as part of our hybrid manufacturing strategy.” NXP projects stable performance in the automotive sector, growth in industrial & IoT, modest gains in the mobile segment, and a decline in Communication Infrastructure & Other compared to previous quarters.

In the Industrial & IoT sector, NXP sees a global recovery across core industrial and consumer IoT markets. Looking ahead, the company aims to enhance profitability by leveraging recent acquisitions, including TTTech Auto, Kinara, and Aviva Links. NXP is also aligning its wafer fabrication footprint with its hybrid manufacturing strategy.

TTTech Automotive Acquisition

Despite changes for TTTech Automotive away from external products and tools, NXP values the acquired IP and software expertise for safe processing in the software-defined vehicle. Sievers emphasized the importance of the 1100 software engineers now part of NXP, highlighting their role in advancing software solutions for the automotive industry.