Author: Sasa Li Na
Recently, NXP announced that Kurt Sievers, the company's current executive vice president and general manager of the automotive division, will be promoted to President of NXP Semiconductor Co., Ltd., taking full responsibility for the company's business lines.
Rick Clemmer, CEO of NXP, said: "The new organizational structure is the result of the natural evolution of the company's strategy. In the future, we will continue to strengthen the business of secure interconnected equipment in the automotive, industrial and Internet of Things areas, and will participate in the mobile and communications infrastructure market. As technological change accelerates, we need to build edge-to-node platforms and solutions that provide data analysis, machine learning, and advanced services according to the company's focus on vertical domains. By streamlining the enterprise architecture, we will be able to take better advantage of our size advantages, promote cross-organizational collaboration, and reduce costs, all of which will help us unleash our business growth potential.
In the second quarter of 2018, NXP reported revenue of $2.29 billion, up 4% year-on-year, and HPMS revenue of $2.19 billion, up 5% and 1% year-on-year. In the division, the auto sector's revenue in the two quarter was $1 billion 8 million, an increase of 7% over the same period last year. The automotive sector accounts for 44% of NXP's total revenue, and this business is growing faster than the company's total revenue.
Automotive semiconductor business has great potential, especially 5G will be large-scale commercial. As one of the important application scenarios of 5G, the Internet of vehicles will usher in an outbreak.
ICInsights predicts that from 2016 to 2021, automotive electronics sales will achieve a compound annual growth rate of 5.4%, the largest of the six major end-system categories. The share of automobiles in the global electronic system has been increasing over the years. By 2021, automotive electronics will account for 9.8% of global electronic system sales.
According to the latest list of the top 15 semiconductor suppliers in the first half of 2008 released by IC nsights, the market research institute, NXP ranks 13th. Enzhipu has a wide range of product lines in automotive electronics, microcontroller, radio frequency and other fields. It is the largest automotive chip manufacturer in the world.
Last week Lars Reger, senior vice president and chief technology officer of automotive electronics at NXP Semiconductor, told First Financial Reporter and others that on average, semiconductors in each car are worth about $384. This value is expected to triple over the next 10-20 years, driven mainly by in-car applications such as automotive, electric vehicles and on-board information and entertainment systems.
He pointed out that the automotive industry has a lot of disruptive innovations, "Why do many large semiconductor companies go to the automotive industry? There are also many mergers and acquisitions around this theme, there are many large enterprises now to enter other markets, must find other new areas to develop business, automobile is an important area. Lars Reger said.
It was seeing the potential of automotive semiconductors that Qualcomm had hoped to diversify through the acquisition of Enzhipu after the top of its mobile chip business. But in July 25th this year, Qualcomm officially announced that it would stop buying NXP.
Lars Reger said the impact of the split with Qualcomm was limited and NXP could cover more areas through technical cooperation.
In addition to Kurt Sievers as president of the company, Ruediger (Rudy) Stroh, former executive vice president and general manager of the security and connectivity division of NXP, will leave NXP on September 30, 2008. Jennifer Wuamett, Deputy Legal Counsel and Chief Intellectual Property Officer of NXP, will succeed Guido Dierick as Executive Vice President and General Legal Counsel of NXP Semiconductor.
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