NXP Semiconductors may generate between eight p.c and 10 p.c of its income from India over the subsequent three to 5 years, a senior govt instructed Reuters on Monday, underscoring rising curiosity within the nation’s nascent chip market.
India’s rising automotive and industrial sectors are anticipated to spice up the corporate’s gross sales within the area, NXP India head Hitesh Garg mentioned on the sidelines of an trade occasion within the tech hub of Bengaluru.
“Subsequent three to 5 years is the time when India goes to develop into very important for NXP as a market the place we additionally generate plenty of income,” he mentioned.
NXP doesn’t at present escape income from India, a fast-growing however small marketplace for most main chip corporations.
The India focus comes at a time when gross sales of automotive chipmakers reminiscent of NXP to key market China have come beneath risk from the nation’s hefty investments in increasing manufacturing of older chips and European tariffs on Chinese language electrical autos.
China accounted for almost a 3rd of NXP’s 2023 gross sales of $13.28 billion (roughly Rs. 1,05,245 crore), primarily based on prospects’ delivery places, whereas income from the remainder of the Asia Pacific market made up nearly 30 p.c.
“A few of the missed alternative from one geography, we are able to seize right here,” Garg mentioned when requested if increasing in markets reminiscent of India may offset uncertainties surrounding gross sales to China.
US President-elect Donald Trump has vowed to levy a 60 p.c tariff on imports of Chinese language-made merchandise, elevating main progress dangers for the world’s second-largest financial system.
India has been making an attempt to develop its chip trade with initiatives together with a $10 billion (roughly Rs. 85,704 crore) incentive bundle. It expects its semiconductor market to be value $63 billion (roughly Rs. 5,39,969 crore) by 2026, however has but to provide its first chip.
NXP mentioned in September it might make investments over $1 billion (roughly Rs. 85,704 crore) in India, doubling its analysis and growth efforts. Different chip corporations together with Micron are additionally investing within the nation.
© Thomson Reuters 2025
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)
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