January 10, 2025 /SemiMedia/ — Hitesh Garg, head of NXP India, stated that the company expects the Indian market to contribute 8%-10% of its revenue within the next 3 to 5 years, reflecting its growing focus on India's emerging semiconductor market.

Speaking at an industry event in Bengaluru, Garg highlighted the rapid growth of India's automotive and industrial sectors as key drivers of NXP's sales in the region. He emphasized, "The next three to five years are critical for NXP in India, and we anticipate generating significant revenue from this market."

Although NXP has not disclosed specific revenue figures from India, reports suggest that India represents a fast-growing but still relatively small market for major chip companies. Meanwhile, NXP and other automotive chipmakers face uncertainties in China due to large-scale investments in legacy chip production and new tariffs imposed by Europe on Chinese electric vehicles.

In 2023, NXP reported global sales of $13.28 billion, with nearly one-third derived from China and approximately 30% from other Asia-Pacific markets. When asked whether expansion in India could offset uncertainties in China, Garg remarked, "We have an opportunity here to recover some of the losses from other regions."

India is striving to build its semiconductor industry, introducing several initiatives, including a $10 billion incentive program. The Indian semiconductor market is projected to reach $63 billion by 2026, although the country has yet to produce its first chip. In September, NXP announced plans to invest over $1 billion in India and to double its R&D efforts to capitalize on this growth opportunity.