[News] NXP Forecasts India to Contribute 8-10% of Revenue by 2030 Amid Market Uncertainties in China

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According to a report from TechNews, citing Reuters, NXP Semiconductors predicts that over the next three to five years, the company could generate between 8% and 10% of its revenue from India, reflecting growing interest in the country’s emerging semiconductor market.

At a local industry event in India, NXP India Head Hitesh Garg highlighted that the growth of India’s automotive and industrial sectors is likely to boost the company’s local revenue. He also emphasized that India is set to become a crucial market for NXP.

The report notes that in September 2024, NXP announced plans to invest over USD 1 billion in India, doubling its research and development efforts in the country. However, as Reuters indicates, NXP does not currently disclose its revenue specifically from India, which remains a fast-growing but relatively small market for most major semiconductor companies.

The Uncertainties of China’s Market

NXP’s growing focus on India could be attributed to challenges in its primary market, China. According to the report, sales in China have been impacted as China invests heavily in expanding production of older-generation chips, while Europe has imposed tariffs on Chinese electric vehicles.

As noted by the report, in 2023, China accounted for nearly one-third of NXP’s USD 13.28 billion in revenue, while 30% came from other Asia-Pacific markets, based on customer shipment locations.

The challenges in the Chinese market have been further intensified by the upcoming inauguration of U.S. President-elect Donald Trump, who has announced plans to impose a 60% tariff on imports of Chinese-manufactured goods.

India’s Semiconductor Initiatives

Meanwhile, India is actively advancing its semiconductor industry. The report points out that the country has launched a USD10 billion incentive program to promote its chip sector and anticipates that the semiconductor market will reach a value of USD 63 billion by 2026. However, India has yet to manufacture its first chip, as the report notes.

Tech Giants’ India Investment

As noted in another report from Reuters, major industry players such as Nvidia and AMD have established research and design centers in India. Additionally, in June 2023, Micron announced a USD 2.7 billion plan for testing and packaging facility in Gujarat, India. Chipmaking equipment manufacturer Applied Materials also announced in June 2023 that it would invest USD 400 million over four years to establish a new engineering center in India.

Read more

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• [News] NVIDIA Reportedly to Partner with India for Chip Tailored for Local Market

(Photo credit: NXP)