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  Date: 01/05/2016

Freescale+NXP and the variable

NXP Semiconductors grew faster than industry average in the year 2014 and 2015. NXP decided to acquire Freescale semiconductor in the year 2015, and completed the acquisition before December of 2015. In 2014 and 2015 NXP Semiconductors increased its sales revenue not only because Apple procured huge number of NXP chips and also due to its product-development strategies, where it cleverly spend its R&D resources on the innovations what the market and its big customers was really in need, so that it did not waste time in launching products which are not market differentiators and also of lesser volume demand.

Even the Freescale Semiconductor consistently maintained its revenue approximately around 1100 Million US$ per quarter in 2014 and early 2015.

If you look at the latest sales performance of NXP Semiconductors after the completion of merging of Freescale, the figures doesn't look great. It's not the plain addition of Freescale + NXP, its less than that, otherwise to say, the sum is multiplied by a <1 variable. In 1st quarter of 2015, NXP sales revenue was approximately 1467 Million US$ and Freescale's revenue for 1st quarter of 2015 was approximately 1170 Million US$ which resulted in a total of approx. 2637 Million US$, which is 417 Million US$ higher compared to the first-quarter 2016 revenue 2220 Million US$ announced by NXP Semiconductors in its latest release. NXP has sold its RF Power business to a Chinese company in the year 2015. So does this fall in revenue is due to the revenue lost by NXP in RF power biz, guess it won't be a US$417 million.

Can the present bigger-NXP makes the revenue multiplying variable >1 in coming quarters and years? The growth in automotive electronics (Self driving car, more electric cars), IOT and also the e-security market can help NXP, provided NXP's product innovation strategy still relevant to the market requirements.

 
          
ADVT
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