Hope returns after setbacks: NXP more optimistic
NXP had been dealing with declining sales for a long time but now sees the future in a more positive light.
Published on July 22, 2025
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Dutch chip manufacturer NXP is once again more positive about the future. The company has seen declining sales and profits for five consecutive quarters, but believes that the worst is now behind. Nevertheless, investors were not enthusiastic about the new quarterly report.
In the second quarter of this year, the company had a turnover of $2.93 billion. That is more than analysts had predicted, but still 6.4% less than in the same quarter of 2024. For the current quarter, the company again expects lower turnover than a year ago. Nevertheless, there is hope. NXP believes it can soon put an end to the series of profit declines.
Demand for chips fluctuates
The global chip sector is struggling, mainly due to weak growth in China. Demand for chips fluctuates sharply with the economy. Now that companies and consumers are investing less, chipmakers such as NXP are feeling the pinch.
Trade tensions between the US and Europe are also causing uncertainty, which is bad for car sales. And cars – especially electric cars – are important for companies such as NXP. Car chips account for about half of NXP's revenue.
1,700 jobs
The problems forced NXP to cut around 1,700 jobs earlier this year. The company also decided to close several factories, including the one in Nijmegen. Production will eventually move to new locations in Dresden and Singapore. The head office will remain in Eindhoven and the research centers in Delft and Nijmegen will also continue to operate.
