November 8, 2023 /SemiMedia/ -- NXP recently released a forecast stating that profits in the fourth quarter of 2023 will be higher than Wall Street forecasts. The resilience of the automotive market and stabilization of industrial demand are expected to offset weak performance in other major markets.

NXP also said that in order to maintain profits, it will also pass on rising costs to end customers.

NXP said in September that demand for products in the automotive field is quite good in all markets around the world, including China, which accounts for about 30% of the company's total revenue.

In the third quarter of 2023, NXP's mobile business revenue fell 8% year-on-year, but increased 33% quarter-on-quarter, which represents a recovery in smartphone demand. However, NXP CEO Kurt Sievers said that the performance of the company's communications infrastructure business in the third quarter was slightly lower than expected.

Although NXP's automotive revenue grew 5% in the third quarter, analysts worry that customer demand for automotive chips may soon decline after months of stockpiling and slowing demand for electric vehicles.