NXP Earnings Highlight ADAS Growth And Automotive Decline

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NXP Earnings Highlight ADAS Growth And Automotive Decline
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NXP's Q1 earnings call highlighted the tension between declining sales in the traditional automotive semiconductor products, and growth in new products, like advanced driver assistance

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NXP is the leading supplier of both automotive processing and infotainment applications processors. 30% of our auto business is focused on high growth sectors like ADAS and electrification which has grown at nearly 40% in compounded growth rate since 2015 and which we expect to continue to grow at 20% - 25% to 30% compounded growth rate as the businesses becomes more material in size.

Sievers later noted that while industry analyst IHS projects 2019 global car production to decrease 1% from 2018, the Q1 decline in Chinese car production fell 13%. Sievers inferred that this indicates a rebound is likely in the second half of 2019.- including microcontrollers and infotainment processors - NXP's design wins in categories like ADAS and battery management systems helped.

Battery management systems, the computational devices that monitor and operate battery cells, are a small segment of the automotive market today but have the potential for explosive growth over the next few years. Clemmer disclosed:

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Well.. Some american tech companies have hyper powerfull technologies for autonomous driving. But non of them was in this statement which means that author of this have lack of information about them. One company presented their latest tech which is capable full self driving.

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