The Dutch chip maker NXP expects to suffer a loss of up to 237 million dollars (218 million euros) this quarter, the company reports on Tuesday when presenting the first quarter figures. The company is feeling the slump in the car sector, a major customer of NXP chips.
For the current quarter, NXP expects revenues of $ 1.7 to $ 1.9 billion. This would amount to a decrease of 23 percent to 14 percent, respectively, compared to the same period a year earlier. At worst this means a loss of $ 237 million and at best a loss of $ 115 million. In the first three months of this year, sales fell slightly to 2 billion euros, as expected by analysts.
The automotive sector has been suffering from a drop in sales for some time, and the corona crisis has been added to this. As a result, there is also less demand for NXP’s chips. The Eindhoven-based company derives half of its turnover from the car industry. NXP technology is used for (semi-) autonomous driving, for example in adaptive cruise control and when detecting other environmental factors via V2X (Vehicle-to-everything).