December 31, 2024 /SemiMedia/ —  NXP Semiconductors has announced that its automotive business now accounts for over 50% of its total revenue, underscoring the company’s growing dominance in the automotive semiconductor sector. At its recent Investor Day, NXP highlighted the pivotal role of its automotive division, which is expected to generate $7.1 billion in revenue in 2024, representing 57% of the company’s overall sales.

NXP's automotive business has positioned itself as a market leader in areas such as in-vehicle processors, radar systems, and connected car solutions. The company’s products are crucial in enabling smart driving, electrification, and software-defined vehicles (SDVs), and it continues to strengthen its leadership with a comprehensive portfolio and robust technological expertise.

Financial Growth and Market Outlook

NXP’s automotive business is expected to grow at a compound annual growth rate (CAGR) of 8-12% from 2024 to 2027, reaching $9.5 billion by 2027. Semiconductor content per vehicle is expected to grow at a mid-to-high single-digit rate, driven by increasing demand for electrification and vehicle intelligence.

Strategic Partnerships

NXP has strengthened its position through key partnerships with automakers like Hyundai and suppliers such as TSMC. These collaborations help drive innovation in SDVs, electrification, and autonomous driving technologies. Additionally, NXP’s CoreRide platform simplifies vehicle computing system integration, accelerating development cycles for customers. NXP’s automotive business is not only a key driver of the company’s growth but also solidifying its position as a leader in the global automotive semiconductor market. With strategic investments in SDVs, electrification, and autonomous driving, NXP is well-positioned to maintain its competitive edge and expand its leadership in the rapidly evolving automotive sector.