On December 4, the VSMC joint venture established by World Advanced and NXP in September 2024 held a groundbreaking ceremony for a 12-inch (300mm) wafer fab in Tampines, Singapore.
Micallef said that China has the world's largest electric vehicle and telecommunications markets, and NXP is trying to find a way to serve international customers who need Chinese production capacity. Public information shows that NXP has a world-class packaging and testing factory in Tianjin, China, but it does not have a front-end manufacturing business in China. "We will work with our partners to build a Chinese supply chain. For those customers who want Chinese supply chain services, we have this capability."
NXP's automotive chip division had revenue of $1.829 billion in the third quarter, down 3% year-on-year and up 6% quarter-on-quarter. NXP CEO Kurt Sievers said that weak industry demand and cautious customer behavior could spread to the Western automotive industry, citing profit warnings from automakers and Tier 1 suppliers trying to further reduce inventory. But Sievers also emphasized that judging from the second and third quarter results, NXP has successfully weathered the cyclical trough of its business and the company expects to resume continuous growth.
Referring to the growth prospects of electric vehicles in China, Ron Martino, executive vice president and chief sales officer of NXP, said that electric vehicles remain the fastest growing market segment both in China and globally, and NXP will continue to invest in innovative technologies including traditional fuel vehicles and various types of electric vehicles in the future.
Judging from the recent performance of analog chip manufacturers such as Infineon, NXP, STMicroelectronics, Texas Instruments, Renesas Electronics, ON Semiconductor, Bosch, and ADI, the performance of related companies is still lingering at a low point due to the fact that the production and sales of new energy vehicles are lower than expected, and the weak situation in the automotive chip market remains. However, the automotive market has seen a new turnaround, and the performance of some leading companies has shown a easing trend in the past two quarters, and the destocking of automotive chips has been effective. Overall, the new energy vehicle industry is developing rapidly. After overcoming this wave of lows, it will usher in a broader development market.