Chipmaker NXP could make up to 10% of revenue from India by 2030, executive says

Bengaluru: NXP Semiconductors could generate between 8 per cent and 10 per cent of its revenue from India over the next three to five years, a senior executive told Reuters on Monday, underscoring rising interest in the country's nascent chip market.

India's growing automotive and industrial sectors are expected to boost the company's sales in the region, NXP India head Hitesh Garg said on the sidelines of an industry event in the tech hub of Bengaluru.

"Next three to five years is the time when India is going to become very significant for NXP as a market where we also generate a lot of revenue," he said.

NXP does not currently break out revenue from India, a fast-growing but small market for most major chip companies.

The India focus comes at a time when sales of automotive chipmakers such as NXP to key market China have come under threat from the country's hefty investments in expanding production of older chips and European tariffs on Chinese electric vehicles.

China accounted for nearly a third of NXP's 2023 sales of $13.28 billion, based on customers' shipping locations, while revenue from the rest of the Asia Pacific market made up almost 30 per cent.

"Some of the missed opportunity from one geography, we can capture here," Garg said when asked if expanding in markets such as India could offset uncertainties surrounding sales to China.

US President-elect Donald Trump has vowed to levy a 60 per cent tariff on imports of Chinese-made products, raising major growth risks for the world's second-largest economy.

India has been trying to grow its chip industry with initiatives including a $10 billion incentive package. It expects its semiconductor market to be worth $63 billion by 2026, but has yet to produce its first chip.

NXP said in September it would invest over $1 billion in India, doubling its research and development efforts. Other chip firms including Micron are also investing in the country.