Automotive is suddenly NXP’s problem child

Ever since taking the helm 11.5 years ago, Rick Clemmer has worked to reposition NXP in two ways. One: he wants the company to exclusively operate in growth markets. And two: he wants to be the market leader in those markets by a large margin, or at the very least in significant sub-segments. In the cutthroat semiconductor industry, life is a lot easier when demand is a given and competitors can only follow at a respectable distance.

And so Clemmer has been chipping off units left and right over the years. These weren’t at all bad businesses; they just didn’t fit the philosophy. This purposeful focus has served the company well in recent years, but it’s turning into a weakness now that the corona pandemic is disrupting markets.