The group cannot currently deliver as much as the customers order.
(Photo: dpa)
Munich The chip manufacturer NXP wants to grow much faster in the next few years than in the past. CEO Kurt Sievers promised the shareholders on this Thursday an annual increase in sales of between eight and twelve percent by 2024. In the past three years, the former Philips division had increased an average of only five percent.
This could allow the Dutch to grow faster than their German rival Infineon. The DAX group is aiming for an average increase in sales of a good nine percent over an industry cycle.
“We want to accelerate our profitable growth,” said Sievers at an investor’s day in New York. That was well received on the stock market. The share price climbed three percent to around $ 221 in early trading on the Nasdaq. Since the beginning of the year, the paper has thus gained around a quarter in value.
If Sievers’ plans work, the Eindhoven-based company will grow from its current turnover of eleven billion dollars (9.6 billion euros) to 15 billion in three years. The competitor Infineon is a bit bigger. In the financial year that ended on September 30, the Munich-based company generated revenues of around eleven billion euros. Infineon is also ahead on the trading floor with a market value of a good 54 billion euros. NXP comes to the equivalent of 50 billion euros.
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NXP attacks Infineon in its core business
NXP wants to take market share from Infineon, especially in the important business with the automotive industry. The semiconductor manufacturer achieves half of its sales in this division. Sievers announced an annual increase in sales in this division of nine to 14 percent – with expected market growth of between seven and 13 percent.
Infineon generates a good 40 percent of its revenue with the automotive industry and is the market leader in this field. For Sievers, radar systems in particular are hopeful: “They are a key element for safe driving.” In addition, the company owner wants to benefit from the trend towards electric cars.
Both NXP and Infineon could grow much faster at the moment. However, the production capacities of the entire chip industry are not nearly sufficient. The scarce components are assigned to the customers. “We go through stressful times,” explained CEO Sievers. Born in Augsburg, he has been leading NXP since spring 2020.
The group has been doing brilliantly since then. The Dutch posted a profit of $ 518 million in the third quarter. In the same period last year, the group posted a loss of 18 million. Sales soared 26 percent to $ 2.9 billion.
There is nothing to suggest that business is slowing. For the current quarter, NXP expects revenues of around three billion dollars, which corresponds to an increase of about one fifth compared to 2020.
The analysts are correspondingly positive. On average, they expect a further strong price increase to $ 237 – and thus a new record level.
More: “We are more powerful than ever”: Infineon announces significantly higher returns