NXP Semiconductor Issues Optimistic Q3 Outlook: "Demand Still Exceeds Supply"

(Photo by NXP Semiconductor)

[Asia Economy Reporter Jeong Hyunjin] Dutch semiconductor company NXP Semiconductors has issued an optimistic outlook, stating that demand for semiconductors used in automobiles and electronic devices will remain at a high level.

According to Bloomberg News and others on the 25th (local time), NXP Semiconductors forecasted in its earnings guidance that third-quarter sales this year are expected to reach $3.35 billion to $3.5 billion (approximately 4.4 trillion to 4.6 trillion KRW). This exceeds the market consensus of $3.32 billion. The gross profit margin is also projected at 58.3%, surpassing the market expectation of 57.6%.

Kurt Sievers, CEO of NXP Semiconductors, stated, "Despite the current macroeconomic conditions, NXP Semiconductors will continue to perform well, and consumer demand in the automotive, industrial, and Internet of Things (IoT) markets will continue to outpace supply." He commented that despite market forecasts predicting a decline in semiconductor demand due to recent inflation increases, recession concerns, and interest rate hikes, the company's performance will remain solid for the time being.

NXP Semiconductors reported that its second-quarter results, which ended on the 3rd, showed sales of $3.31 billion, a 28% increase compared to the same period last year. The gross profit margin was 57.8%.

Following the earnings announcement, NXP Semiconductors' stock price fell more than 2% in after-hours trading.

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