NXP Semiconductors (NXPI)

Auto + edge/IoT processors and connectivity — automotive semiconductor leader

AI exposure 8% — derived from reported segment revenue, not asserted.

Where it sits

Silicon Layer → Analog, Logic & Mixed-Signal ICs · figures rebased to Q2 2026, reported 2026-07-28

Auto MCUs (S32), radar, in-vehicle networking, secure car access, electrification leads 5 businesses in this sub-tier that together are 100% of revenue, so Analog, Logic & Mixed-Signal ICs is effectively the whole company rather than one leg of it.

Reported segments

NXP ($3,496M Q2 2026, +19.5% YoY). Q2 mix: Automotive 55.4% ($1,938M, +12.1%) = primary B1 Analog, Logic & Mixed-Signal ICs — auto MCUs, radar, in-vehicle networking; Industrial & IoT 21.6% ($755M, +38.3%, the fastest leg — i.MX/RT/MCX processors grew 40% and are 36% of it); Communication Infrastructure & Other 12.9% ($452M, +41.3%) split between secure cards and the data-centre-linked digital networking and RF power lines; Mobile 10.0% ($351M, +6.0%).

How the 8% is built

Investment read

Moat. Automotive-semiconductor scale (a top auto-chip vendor) plus edge processing and connectivity — multi-year design cycles and safety qualification are the barrier, and content per vehicle grows independently of unit volumes: SDV, radar and electrification chips were more than 45% of automotive revenue as of Q1 2026.

Bottleneck / pricing power. Moderate pricing power from auto-qualification barriers and long design-in cycles, at a 58.0% non-GAAP gross margin with a 57-63% long-run target. The VSMC Singapore 300mm JV is the structural margin catalyst — management guides ~200bps of gross-margin uplift once loaded, but not before 2027-28.

Role in the AI stack. The automotive/edge processing and connectivity supplier — with an emerging data-center control-plane line.

Connected companies

Others in Analog, Logic & Mixed-Signal ICs

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