-
NXP Semiconductors N.V. reported financial results for the first quarter, which ended March 31, 2024.
“NXP delivered quarterly revenue of $3.13 billion, in-line with the midpoint of guidance with all our focus end-markets performing as expected. Our first-quarter results, guidance for the second quarter, and our early views into the second half of the year underpin a cautious optimism that NXP is successfully navigating through this industry-wide cyclical downturn. We continue to manage what is in our control enabling NXP to drive solid profitability and earnings in a challenging demand environment,” said Kurt Sievers, NXP President and Chief Executive Officer.
Key Highlights for the First Quarter 2024:
- Revenue was $3.13 billion, up 0.2 percent year-on-year;
- GAAP gross margin was 57.0 percent, GAAP operating margin was 27.4 percent and GAAP diluted Net Income per Share was $2.47;
- Non-GAAP gross margin was 58.2 percent, non-GAAP operating margin was 34.5 percent, and non-GAAP diluted Net Income per Share was $3.24;
- Cash flow from operations was $851 million, with net capex investments of $224 million, resulting in non-GAAP free cash flow of $627 million;
- During the first quarter of 2024, NXP continued to execute its capital return policy with the payment of $261 million in cash dividends, and the repurchase of $303 million of its common shares. The total capital return of $564 million in the quarter represented 90 percent of first quarter non-GAAP free cash flow. On a trailing twelve month basis, capital return to shareholders represented $2.39 billion or 82 percent of non-GAAP free cash flow. The interim dividend for the first quarter 2024 was paid in cash on April 10, 2024 to shareholders of record as of March 21, 2024. Subsequent to the end of the first quarter, between April 1, 2024 and April 26, 2024, NXP executed via a 10b5-1 program additional share repurchases totaling $97 million;
- On March 1, 2024, NXP fully retired at maturity the $1 billion aggregate principal amount of outstanding 4.875% Senior Unsecured Notes due 2024;
- On January 9, 2024, NXP announced the extension of its automotive radar one-chip family. The new SAF86xx integrates a high-performance radar transceiver, a multi-core radar processor and a hardware engine for state-of-the-art secure data communication over Automotive Ethernet;
- On January 11, 2024, NXP announced it has signed a memorandum of understanding with Honeywell to help optimize the way commercial buildings sense and securely control energy consumption. The collaboration aims to help make buildings operate more intelligently by integrating NXP Semiconductors’ neural network-enabled, industrial-grade applications processors into Honeywell’s building management systems (BMS);
- On March 19, 2024, NXP published its 2023 Corporate Sustainability Report (CSR), reinforcing its commitment toward transparency and sustainable business practices. Detailing NXP’s overall Environmental, Social and Governance (ESG) strategy and guiding principles, the report highlights the company’s year-on-year progress in reaching its mid-term and long-term ESG goals; and
- On March 28, 2024, NXP announced the S32 CoreRide platform, the industry-first platform to combine processing, vehicle networking and system power management with integrated software to address the complexity, scalability, cost-efficiency and development efforts required for next-generation Software Defined Vehicles (“SDV”). Coincident with the CoreRide announcement, NXP introduced the S32N family of vehicle super-integration processors offering best-in-class real-time performance that enables S32 CoreRide central compute solutions, empowering OEMs with efficient and flexible processing choices. The 5nm S32N family greatly simplifies complex vehicle architecture development and cuts costs for automakers and tier-1 suppliers.
Summary of Reported First Quarter 2024 ($ millions, unaudited) (1)
Q1 2024 Q4 2023 Q1 2023 Q – Q Y – Y Total Revenue $ 3,126 $ 3,422 $ 3,121 -9 % — % GAAP Gross Profit $ 1,783 $ 1,937 $ 1,770 -8 % 1 % Gross Profit Adjustments(i) $ (35 ) $ (73 ) $ (46 ) Non-GAAP Gross Profit $ 1,818 $ 2,010 $ 1,816 -10 % — % GAAP Gross Margin 57.0 % 56.6 % 56.7 % Non-GAAP Gross Margin 58.2 % 58.7 % 58.2 % GAAP Operating Income (Loss) $ 856 $ 907 $ 825 -6 % 4 % Operating Income Adjustments(i) $ (224 ) $ (312 ) $ (260 ) Non-GAAP Operating Income $ 1,080 $ 1,219 $ 1,085 -11 % — % GAAP Operating Margin 27.4 % 26.5 % 26.4 % Non-GAAP Operating Margin 34.5 % 35.6 % 34.8 % GAAP Net Income (Loss) attributable to Stockholders $ 639 $ 697 $ 615 Net Income Adjustments(i) $ (201 ) $ (269 ) $ (219 ) Non-GAAP Net Income (Loss) Attributable to Stockholders $ 840 $ 966 $ 834 GAAP diluted Net Income (Loss) per Share(ii) $ 2.47 $ 2.68 $ 2.35 Non-GAAP diluted Net Income (Loss) per Share(ii) $ 3.24 $ 3.71 $ 3.19 Additional information Q1 2024 Q4 2023 Q1 2023 Q – Q Y – Y Automotive $ 1,804 $ 1,899 $ 1,828 -5 % -1 % Industrial & IoT $ 574 $ 662 $ 504 -13 % 14 % Mobile $ 349 $ 406 $ 260 -14 % 34 % Comm. Infra. & Other $ 399 $ 455 $ 529 -12 % -25 % DIO 144 132 135 DPO 65 72 68 DSO 26 24 31 Cash Conversion Cycle 105 84 98 Channel Inventory (months) 1.6 1.5 1.6 Gross Financial Leverage(iii) 1.9x 2.1x 2.0x Net Financial Leverage(iv) 1.3x 1.3x 1.3x - Additional Information for the First Quarter 2024:
- For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
- Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
- Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
- Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.
Guidance for the Second Quarter 2024: ($ millions, except Per Share data) (1)
Guidance Range GAAP Reconciliation non-GAAP Low Mid High Low Mid High Total Revenue $3,025 $3,125 $3,225 $3,025 $3,125 $3,225 Q-Q -3% 0% 3% -3% 0% 3% Y-Y -8% -5% -2% -8% -5% -2% Gross Profit $1,715 $1,788 $1,863 $(40) $1,755 $1,828 $1,903 Gross Margin 56.7% 57.2% 57.8% 58.0% 58.5% 59.0% Operating Income (loss) $821 $884 $949 $(179) $1,000 $1,063 $1,128 Operating Margin 27.1% 28.3% 29.4% 33.1% 34.0% 35.0% Financial Income (expense) $(69) $(69) $(69) $(6) $(63) $(63) $(63) Tax rate 17.2%-18.2% 16.3%-17.3% NCI & Other $(9) $(9) $(9) $(4) $(5) $(5) $(5) Shares – diluted 258.5 258.5 258.5 258.5 258.5 258.5 Earnings Per Share – diluted $2.36 $2.56 $2.77 $3.00 $3.20 $3.41 Note (1) Additional Information:
- GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(12) million; Share-based Compensation, $(15) million; Other Incidentals, $(13) million;
- GAAP Operating Income (loss) is expected to include PPA effects, $(42) million; Share-based Compensation, $(115) million; Restructuring and Other Incidentals, $(22) million;
- GAAP Financial Income (expense) is expected to include Other financial expense $(6) million;
- GAAP Non-Controlling Interest (NCI) and Other includes non-controlling interest $(5) million and Other $(4) million;
- GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for Non-controlling interest & Other and the adjustment on Tax due to the earlier mentioned adjustments.
NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP’s control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding “Non-GAAP Financial Measures” below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding “Forward-looking Statements.” We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.
Non-GAAP Financial Measures
In managing NXP’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses.
We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.
Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP’s operations.
In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share – Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from equity-accounted investments.
The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).
Original – NXP Semiconductors
-
The NXP Foundation, the nonprofit organization associated with NXP Semiconductors, has announced the official opening of the NXP Advanced Manufacturing Lab at Austin Community College.
The NXP Advanced Manufacturing Lab is co-located with the ACC High School Advanced Manufacturing IMPACT Academy at ACC Highland, where students can work toward college credits while they are still in high school.
The lab was announced last year as part of a $250,000 donation to the Austin Community College District (ACC) Foundation in support of the school’s Engineering Technology and Advanced Manufacturing Program. In addition to the lab, NXP’s donation includes scholarship funds targeting candidates from the Advanced Manufacturing Academy.
The NXP Advanced Manufacturing Lab demonstrates NXP’s ongoing commitment to promote and improve science, technology, engineering and math (STEM) education in the local Austin community.
The training tools provided at the lab will help support and extend educational curriculum and resources for both adult and high school students entering the semiconductor industry and other advanced manufacturing occupations. Tools and support will address education in Industry 4.0 components, fully factory automation, reading schematics and navigating feedback control systems.
Original – NXP Semiconductors
-
NXP Semiconductors N.V. reported financial results for the third quarter, ended October 1, 2023.
“NXP delivered quarterly revenue of $3.43 billion, $34 million above the midpoint of guidance. Revenue trends in our Mobile, Industrial & IoT and Automotive end-markets all performed in-line or better than anticipated, while our Communication Infrastructure & Other end market was slightly below our expectations. The combination of our third quarter results, and the mid-point of our fourth quarter guidance indicates revenue for the full year 2023 will be flat versus 2022 in a challenging and cyclical market environment,” said Kurt Sievers, NXP President and Chief Executive Officer.
Key Highlights for the Third Quarter 2023:
- Revenue was $3.43 billion, down 0.3 percent year-on-year;
- GAAP gross margin was 57.2 percent, GAAP operating margin was 28.9 percent and GAAP diluted Net Income per Share was $3.01;
- Non-GAAP gross margin was 58.5 percent, non-GAAP operating margin was 35.0 percent, and non-GAAP diluted Net Income per Share was $3.70;
- Cash flow from operations was $988 million, with net capex investments of $200 million, resulting in non-GAAP free cash flow of $788 million;
- During the third quarter of 2023, NXP continued to execute its capital return policy with the payment of $262 million in cash dividends, and the repurchase of $306 million of its common shares. The total capital return of $568 million in the quarter represented 72 percent of third quarter non-GAAP free cash flow. The interim dividend for the third quarter 2023 was paid in cash on October 5, 2023 to shareholders of record as of September 13, 2023. Subsequent to the end of the third quarter, between October 2, 2023 and November 3, 2023, NXP executed via a 10b5-1 program additional share repurchases totaling $124 million;
- On August 4, 2023, Semiconductor industry players Bosch, Infineon, Nordic Semiconductor, NXP, and Qualcomm Technologies, announced the planned formation of a joint-venture aimed at advancing the adoption of RISC-V globally;
- On August 8, 2023, TSMC, Bosch, Infineon, and NXP announced the planned formation of a joint venture European Semiconductor Manufacturing Company (ESMC) GmbH, in Dresden, Germany to provide advanced semiconductor manufacturing services predominantly to the automotive and industrial sectors. The planned 300mm fab joint venture will be 70% owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake; and
- On September 19, 2023 NXP announced it is strengthening its European research and development (R&D) through grants to be provided via the 2nd Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT). Dedicated NXP teams across Austria, Germany, the Netherlands and Romania will drive innovation including 5nm design for the Software Defined Vehicle, radar and battery management systems in automotive, and Ultra-Wideband as well as artificial intelligence (AI), RISC-V and post-quantum cryptography.
Original – NXP Semiconductors
-
NXP Semiconductors N.V. has been honored by three automotive partners. The company has collected supplier awards from DENSO and Hyundai Motor Group for its outstanding efforts in helping to ensure supply capacity, continuity and excellent customer service, as well as an innovation award from BMW Group for its digital car key solution.
“Successfully navigating the auto industry’s complex supply chain landscape to deliver true innovation our customers need can only be achieved through close collaboration with semiconductor manufacturers, Tier 1s and OEMs. We are extremely proud to be honored by BMW Group for our innovative UWB based digital car key solution, and by both DENSO and Hyundai Motor Group for NXP’s steadfast commitment to meeting our customer’s needs. Our teams work tirelessly to develop breakthrough technologies and foster collaborative customer relationships that enable NXP to deliver strategic long-term forecasts and expand capacity where needed, despite challenging conditions.”
Ron Martino, Executive Vice President, Global Sales at NXP
DENSO’s Business Partner of the Year Awards are given to companies that demonstrate a shared commitment to outstanding performance, exceptional quality, sustainability, diversity and inclusion, and advancing mobility. DENSO’s Gold Award for Special Achievements recognizes NXP’s outstanding efforts to ensure business continuity despite difficult supply conditions while maintaining strong customer service levels.
“This past year has been defined by an urgent need to adapt and evolve for emerging mobility trends, from electrification to connectivity and much more. All of our partners, but especially award recipients, have been crucial in helping us navigate such changes and deliver for our customers – quickly, sustainably and with enhanced value.”
Mike Winkler, vice president of the North America Purchasing Group at DENSO
In April, NXP received the prestigious 2022 Global Supplier of the Year award from Hyundai Motor Group, making NXP one of the first semiconductor vendors to receive such recognition. The award highlights the significance of the strong collaboration between semiconductor suppliers and auto OEMs from a supply and supply assurance viewpoint. It also recognizes NXP’s outstanding local team support and engagement in Korea.
In collaboration with Continental Automotive GmbH Regensburg, NXP was also awarded the BMW Group Supplier Innovation Award for the company’s innovative digital car key solution that leverages Ultra-Wideband technology. The digital key enables drivers to unlock their cars securely with their smartphones without needing a physical car key.
Original – NXP Semiconductors
-
NXP Semiconductors N.V. announced it is strengthening its European research and development (R&D) through grants to be provided via the 2nd Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT), with the final investment decision pending confirmation of the level of public funding. Dedicated NXP teams across Austria, Germany, the Netherlands and Romania will innovate in core technologies across automotive, industrial and cybersecurity. This includes 5nm, advanced driving assistance and battery management systems in automotive, 6G and Ultra-Wideband as well as artificial intelligence (AI), RISC-V and post-quantum cryptography.
“NXP’s planned investments in our Austrian, German, Dutch, and Romanian operations signal our strong commitment to the EU’s goal of enabling both digital and green transition. Our activities through IPCEI ME/CT complement NXP’s planned joint venture participation in TSMC’s first European foundry. It also underscores our commitment to strengthening innovation and supply chain resilience in Europe. NXP believes expanding research, development, and manufacturing efforts in Europe is of vital importance, and each of these three critical elements must be successfully integrated to achieve greater European semiconductor ecosystem resilience.”
Kurt Sievers, President and CEO of NXP
Extensive research, development, and manufacturing presence across multiple sites in all four countries enable NXP to develop cutting-edge technology and products that contribute significantly to the achievement of EU industrial strategies. In close collaboration with a strong ecosystem of more than 50 partners from industry and academia across Europe, NXP will strengthen key technologies of microelectronics in Europe.
No other microelectronics company participating in IPCEI ME/CT is currently planning to invest in its operations across so many EU member states. NXP is also an active participant in three of the four IPCEI ME/CT workstreams: “Sense”, “Think”, and “Communicate”, reflecting NXP’s areas of leadership and strategic focus.
NXP’s planned investments in Austria, Germany, the Netherlands, and Romania follow the announcement that the company is going to form a new joint venture, ESMC (European Semiconductor Manufacturing Company), with TSMC, Bosch, and Infineon with plans to establish TSMC’s first semiconductor manufacturing site in Europe. The new 300mm fab, planned to be built in Dresden, Germany, is expected to have a monthly production capacity of 40,000 300mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, further strengthening Europe’s semiconductor manufacturing ecosystem with advanced FinFET transistor technology and creating about 2,000 direct high-tech professional jobs.
NXP in Austria
NXP Austria is a center of excellence for cryptography and security, advancing solutions that make lives easier, better and safer. NXP Austria innovates hardware and software solutions as well as services for the IoT, automotive, Industry 4.0 and mobile sectors. At NXP Austria, nearly 800 people from approximately 50 countries work on Innovations to research, design, develop, manage, and promote NXP’s products.
For more information on NXP in Austria, visit nxp.com/austria
NXP in Germany
With over 1,200 people, Germany is a very important R&D hub for NXP with a focus on semiconductor solutions for the automotive market as well as secure connected edge applications, such as industrial IoT, mobile, and wearables. Primary R&D competencies in Hamburg, Munich, and Dresden include cybersecurity, automotive processing, and RF. A collaborative quantum computing initiative was established in 2023 in Hamburg. IPCEI will help to further strengthen and expand these core competencies. In addition, the German sites are home to an experienced sales engineering team that completes NXP’s global network of customer support.
For more information on NXP in Germany, visit nxp.com/germany
NXP in the Netherlands
NXP has over 2,200 people and significant operations across three sites in the Netherlands. NXP’s international headquarters is located on the High Tech Campus Eindhoven. R&D groups based in Eindhoven focus on security innovation, software and hardware IP development, chip design, system innovation and certification. NXP Nijmegen features manufacturing, R&D, testing, technology enablement and support functions. NXP’s Delft site is home to hardware and software design teams focusing on secure wireless solutions including automotive electronics such as radio, GPS, car access systems, and sensor electronics.
For more information on NXP in the Netherlands, visit nxp.com/netherlands
NXP in Romania
NXP Bucharest’s over 1,000 people focus on software development for automotive, microcontrollers and connectivity products as well as IT service management and customer supply operations. Each year, NXP Romania hosts interns who learn the specifics of software development in automotive, edge computing and IoT.
For more information on NXP in Romania, visit nxp.com/romania
Original – NXP Semiconductors
-
TSMC, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. announced a plan to jointly invest in European Semiconductor Manufacturing Company (ESMC) GmbH, in Dresden, Germany to provide advanced semiconductor manufacturing services. ESMC marks a significant step towards construction of a 300 mm fab to support the future capacity needs of the fast-growing automotive and industrial sectors, with the final investment decision pending confirmation of the level of public funding for this project. The project is planned under the framework of the European Chips Act.
The planned fab is expected to have a monthly production capacity of 40,000 300 mm (12-inch) wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology, further strengthening Europe’s semiconductor manufacturing ecosystem with advanced FinFET transistor technology and creating about 2,000 direct high-tech professional jobs. ESMC aims to begin construction of the fab in the second half of 2024 with production targeted to begin by the end of 2027.
The planned joint venture will be 70 percent owned by TSMC, with Bosch, Infineon, and NXP each holding 10 percent equity stake, subject to regulatory approvals and other conditions. Total investments are expected to exceed 10 billion euros consisting of equity injection, debt borrowing, and strong support from the European Union and German government. The fab will be operated by TSMC.
“This investment in Dresden demonstrates TSMC’s commitment to serving our customers’ strategic capacity and technology needs, and we are excited at this opportunity to deepen our long-standing partnership with Bosch, Infineon, and NXP,” said Dr. CC Wei, Chief Executive Officer of TSMC. “Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe.”
Dr. Stefan Hartung, chairman of the Bosch board of management: “Semiconductors are not only a crucial success factor for Bosch. Their reliable availability is also of great importance for the success of the global automotive industry. Apart from continuously expanding our own manufacturing facilities, we further secure our supply chains as an automotive supplier through close cooperation with our partners. With TSMC, we are pleased to gain a global innovation leader to strengthen the semiconductor ecosystem in the direct vicinity of our semiconductor plant in Dresden.”
“Semiconductors are not only a crucial success factor for Bosch. Their reliable availability is also of great importance for the success of the global automotive industry. Apart from continuously expanding our own manufacturing facilities, we further secure our supply chains as an automotive supplier through close cooperation with our partners. With TSMC, we are pleased to gain a global innovation leader to strengthen the semiconductor ecosystem in the direct vicinity of our semiconductor plant in Dresden.”said Dr. Stefan Hartung, chairman of the Bosch board of management
“Our joint investment is an important milestone to bolster the European semiconductor ecosystem. With this, Dresden is strengthening its position as one of the world’s most important semiconductor hubs that is already home to Infineon’s largest frontend site,” said Jochen Hanebeck, CEO of Infineon Technologies. “Infineon will use the new capacity to serve the growing demand particularly of its European customers, especially in automotive and IoT. The advanced capabilities will provide a basis for developing innovative technologies, products and solutions to address the global challenges of decarbonization and digitalisation.”
“NXP is very committed to strengthening innovation and supply chain resilience in Europe,” said Kurt Sievers, President and CEO of NXP Semiconductors. “We thank the European Union, Germany, and the Free State of Saxony for their recognition of the semiconductor industry’s critical role and for their true commitment to boost Europe’s chip ecosystem. The construction of this new and significant semiconductor foundry will add much needed innovation and capacity for the range of silicon required to supply the sharply increasing digitalization and electrification of the automotive and industrial sectors.”
Original – Bosch
-
Semiconductor industry players Robert Bosch GmbH, Infineon Technologies AG, Nordic Semiconductor, NXP® Semiconductors, and Qualcomm Technologies, Inc., have come together to jointly invest in a company aimed at advancing the adoption of RISC-V globally by enabling next-generation hardware development.
Formed in Germany, this company will aim to accelerate the commercialization of future products based on the open-source RISC-V architecture. The company will be a single source to enable compatible RISC-V based products, provide reference architectures, and help establish solutions widely used in the industry. Initial application focus will be automotive, but with an eventual expansion to include mobile and IoT.
At its core, RISC-V encourages innovation, allowing any company to develop cutting-edge, customized hardware based on an open-source instruction set. Further adoption of the RISC-V technology will promote even more diversity in the electronics industry – reducing the barriers to entry for smaller and emergent companies and enabling increased scalability for established companies.
The company calls on industry associations, leaders, and governments, to join forces in support of this initiative which will help increase the resilience of the broader semiconductor ecosystem.
The company formation will be subject to regulatory approvals in various jurisdictions.
- Robert Bosch GmbH
“Bosch is convinced that initiatives promoting the RISC-V open specifications will bring the global mobility market a significant step further. The initiative now planned will greatly help to establish a reliable and efficient EU-based semiconductor ecosystem,” said Jens Fabrowsky, Executive Vice President at Bosch and responsible for the semiconductor business.
- Infineon Technologies AG
“As vehicles become software-defined and dependability requirements increase due to electrification and connectivity, for example, as well as through trends like autonomous driving, there is a general need for standardization and ecosystem compatibility across the industry, with CPUs being a key IP. We are proud to support the establishment of trusted RISC-V based automotive products with this initiative. The knowledge and expertise of leading market players will unleash the full potential of RISC-V in the automotive sector,” said Peter Schiefer, Division President of Infineon’s Automotive Division.
- Nordic Semiconductor
“Nordic Semiconductor is a committed and enthusiastic supporter of the RISC-V initiative and stands ready to drive the project forward. Nordic’s IoT solutions represent the leading edge of low power wireless technology and to retain that position it’s critical we maintain continuous access to efficient and powerful embedded microprocessors. An open collaboration with like-minded companies to continually enhance innovative RISC-V microprocessor IP and ensure a robust and reliable supply of the technology is the ideal answer to this challenge,” said Svein-Egil Nielsen, CTO/EVP R&D and Strategy, Nordic Semiconductor.
- NXP Semiconductors
“NXP is proud to be part of a new EU-based joint endeavor to pioneer fully certified RISC-V-based IP and architectures, initially for the automotive industry. The creation of a one-stop-shop ecosystem where customers can select turnkey assets will strengthen the adoption of RISC-V across many European industries,” said Lars Reger, Executive Vice President and Chief Technology Officer at NXP Semiconductors. “We thank the Artificial Intelligence Center Hamburg (ARIC) e.V. for their support of this collaboration.”
- Qualcomm Technologies, Inc.
“We are excited to come together with other industry players to drive the expansion of the RISC-V ecosystem through development of next-generation hardware. Qualcomm Technologies has been investing in RISC-V for more than five years and we’ve integrated RISC-V micro-controllers into many of our commercial platforms. We believe RISC-V’s open-source instruction set will increase innovation and has the potential to transform the industry,” Ziad Asghar, Senior Vice President of Product Management, Qualcomm Technologies, Inc.
Original – Infineon Technologies
