NXP Semiconductors India unit’s growth rate skids but remains showstopper for parent

Dutch chipmaker NXP Semiconductors, one of the world’s leading semiconductor company building solutions for embedded applications, has been facing headwinds globally with topline remaining flat in 2023 after two bumper years and if trends for the last year is anything to go by it is likely to have ended it with a decline in revenue.

The company’s Indian arm, too saw some setback as growth rate skidded in FY24 even as it remains one of the showstoppers for the Dutch parent.

In India, the company reported a Rs 2,678 crore revenue in the year ended March 31, 2024 (FY24), as per information collated by VCCEdge, a financial data research platform and a sister unit of Techcircle. This is nearly 17% increase from the previous year but marked a sharp deceleration from the 44% rise in FY23. The firm recorded Rs 295 crore in profit in FY24, up 9%. This too marked a sharp slide from 47% rise in FY23.

NXP Semiconductors’ spokesperson did not respond to TechCircle’s queries.

Headquartered in the Netherlands, NXP Semiconductors stands on the legacy of over 70 years under parent Royal Philips. In 2006, Philips Semiconductors was spun out of its parent company Royal Philips to become NXP. The move made the independent semiconductor company number two in the European market and a top ten player globally, at the time. For the year ended December 31, 2023, the company generated revenue of $13.27 billion, compared to $13.21 billion for the previous year, registering less than 1% increase.

In an earlier interview with TechCircle, NXP Semiconductors India country manager Hitesh Garg said that with the government setting ambitious targets, we see a clear path to drive more demand for semiconductors domestically. This demand might not be fully realized today but is projected to grow significantly in the next three years, he had added.

“With government initiatives pushing for India to account for approximately 10% of global semiconductor consumption by 2030 aligns with a target for my own company to sell at least 10% of our chips in India. Ideally, we’d aim for even higher—15% if possible—as the market matures and grows,” he added.

The Dutch semiconductor company has close to 4,000 employees spread across four locations (Bengaluru, Noida, Pune, and Hyderabad) in India. India also houses one-third of NXP Semiconductors’ R&D workforce. Recently, the company announced that it will be investing $1 billion in the country, over the next few years to double down on the R&D efforts. Further, the company also said that it will take the workforce strength to 6,000.