Carefully controlling supply, NXP is “successfully navigating through this industry-wide cyclical downturn,” CEO Kurt Sievers said.
NXP reported 3.1 billion dollars of revenue in Q1 2024, roughly equal to the same three-month period last year. Not a bad result considering the slump in car sales in many parts of the world and the fact that the Eindhoven-based chip firm derives well over half of its revenue from automotive sales. NXP’s automotive Q1 revenue dipped only 1 percent year-on-year.
The decent result isn’t mere luck. NXP started to dial down supply in the second quarter of 2023 to “engineer a soft landing.” By sacrificing some quarterly revenue to keep customer inventory at modest levels, big swings in demand are somewhat leveled out. “We continue to manage an orderly process of inventory digestion with our major direct automotive Tier 1 customers,” CEO Kurt Siever told investors on a conference call discussing Q1 results.
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