Chipmaker NXP Semiconductors said Thursday it expects to reach $ 15 billion in sales by 2024, with much of the expansion coming from internet-connected electric vehicles.
The Dutch company already derives around half of its revenue, which is expected to reach $ 11 billion this year, from the automotive sector. Speaking to Reuters after hosting an investor presentation, NXP chief executive Kurt Sievers said the company intends to focus on key areas where more chips are entering cars and where NXP thinks they can occupy a market position at least twice that of any competitor.
One of these areas is radar sensors, which are increasingly being installed in cars for safety systems capable of automatically braking before a collision. NXP has a 44% market share in this area and $ 600 million in sales today, and Sievers said the company believes the radar chips could reach $ 1 billion in sales by 2024.
But perhaps the most lucrative for NXP could be the chips that help connect cars to the internet so they can be updated with new software to unlock features or services that automakers can charge for. money. Tesla Inc pioneered the business model and the auto industry is looking to embrace it more widely.
NXP manufactures both the “gateway” chips that connect the vehicle to the Internet and the “domain controllers” that can distribute software updates to various subsystems in the car, such as the transmission.
NXP competes with Marvell Technology in selling such chips, but Sievers said NXP believes it has a top market share.
“The cars of tomorrow will be updated throughout their lifetimes with new software to improve performance and enable new use cases on existing hardware. And the gateway to those downloads new software must be highly secure, ”Sievers said.