Dutch chip maker NXP, getting past failed Qualcomm merger, sees China as biggest growth market
Company CEO told investors that tariffs were ‘not a major issue’ and that the Chinese automotive market was a major source of revenue
NXP Semiconductors, moving beyond the failed US$44 billion purchase by its US counterpart Qualcomm, is highlighting China as a key source of future growth.
The Dutch chip maker, which fell victim to the US-China trade dispute as it failed to secure Chinese regulators’ approval for the acquisition, said it continued to see China as its main growth driver, particularly in the automotive industry.
The company’s leader said the tariffs weren’t expected to make a dent on the NXP balance sheet.
“We don’t see significant impact from the trade issues” on business, President and CEO Richard Clemmer said in a meeting with investors on Tuesday in New York, the first such event since the Qualcomm merger talks began in October 2016.
The tariffs are “not a major issue”, he said, estimating they would cost the company about US$10 million each year. This compares with US$9.26 billion in revenue for 2017, according to a company earnings report.