NXP Semiconductors Turns More Optimistic as Auto Demand and Data Center Sales Improve

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NXP Semiconductors (NASDAQ:NXPI) is seeing a much constructive request situation than it did respective months ago, peculiarly successful automotive, Executive Vice President of Investor Relations Jeff Palmer said astatine TD Cowen’s Technology, Media & Telecom Conference.

Speaking with TD Cowen semiconductor expert Joshua Buchalter, Palmer said NXP is “more optimistic than we person been successful a while” compared with 90 to 180 days ago. Automotive accounts for 58% of the company, and Palmer said betterment successful that marketplace tends to assistance the company’s broader outlook.

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Palmer pointed to respective indicators suggesting improving demand, including a book-to-bill ratio “solidly supra one,” gathering end-customer backlog done distribution, much precocious orders and expedites, and lengthening pb times.

He besides said NXP raised immoderate prices successful the archetypal 4th owed to inflationary input costs and expects further increases successful the 2nd half. The outgo unit is coming chiefly from energy, transportation, precious metals and substrates, alternatively than wafers, helium said.

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“Customers ne'er similar terms increases,” Palmer said. He added that NXP is not trying to grow margins done pricing, but to support gross margins erstwhile the institution cannot offset input outgo ostentation operationally.