10-KPeriod: FY2023

NXP Semiconductors N.V. Annual Report, Year Ended Dec 31, 2023

Filed February 22, 2024For Securities:NXPI

Summary

NXP Semiconductors N.V. reported steady revenue for the fiscal year 2023, reaching $13.28 billion, a slight increase from $13.20 billion in 2022. The company saw robust growth in its Automotive segment, which increased by 8.8%, driven by higher semiconductor content per vehicle due to advancements in electrification and autonomous driving features. This growth partially offset declines in the Industrial & IoT and Mobile segments, which experienced year-over-year decreases of 13.3% and 17.4%, respectively. Financially, NXP generated strong operating cash flow of $3.51 billion and returned $2.06 billion to shareholders through dividends and share repurchases. The company maintained a healthy cash position of $4.27 billion. Research and development expenses increased by 12.6% to $2.42 billion, reflecting continued investment in innovation, particularly in areas like ADAS, in-vehicle networking, and edge computing. The company also announced a significant investment of approximately $550 million in the European Semiconductor Manufacturing Company (ESMC) to bolster European semiconductor production capabilities.

Financial Highlights

56 data points
Beta

Revenue

$13.28B

56.9% Gross Margin

Net Income

$2.82B

21.3% Net Margin

EPS (Diluted)

$10.70

Total Assets

$24.35B

Cash & Equivalents

$3.86B

Free Cash Flow

$2.69B

Financial Statements
Beta
Revenue$13.28B
Cost of Revenue$5.72B
Gross Profit$7.55B
R&D Expenses$2.42B
SG&A Expenses$1.16B
Operating Expenses$3.88B
Operating Income$3.66B
Interest Expense$438.00M
Net Income$2.82B
EPS (Basic)$10.83
EPS (Diluted)$10.70
Shares Outstanding (Basic)258.38M
Shares Outstanding (Diluted)261.37M

Key Highlights

  • 1Revenue remained relatively flat year-over-year, reaching $13.28 billion in 2023.
  • 2Automotive segment revenue grew by 8.8% to $7.48 billion, driven by increased semiconductor content per vehicle.
  • 3Industrial & IoT and Mobile segments experienced revenue declines of 13.3% and 17.4%, respectively.
  • 4Operating cash flow was strong at $3.51 billion, with $2.06 billion returned to shareholders via dividends and repurchases.
  • 5R&D investment increased by 12.6% to $2.42 billion, signaling continued focus on innovation.
  • 6NXP announced a commitment to invest approximately $550 million in the European Semiconductor Manufacturing Company (ESMC).
  • 7The company maintained a solid cash position of $4.27 billion.

Frequently Asked Questions

NXP Semiconductors reported a total revenue of $13.28 billion for the fiscal year 2023, a slight increase of 0.5% compared to $13.20 billion in 2022. This growth was primarily driven by the Automotive segment.

The Automotive segment saw strong growth of 8.8%, while the Communication Infrastructure & Other segment grew by 5.4%. However, the Industrial & IoT segment declined by 13.3%, and the Mobile segment decreased by 17.4%.

NXP generated robust operating cash flow of $3.51 billion in 2023 and maintained a strong cash and short-term deposit balance of $4.27 billion. The company returned $2.06 billion to shareholders through dividends and share repurchases, demonstrating a commitment to returning capital while continuing to invest in R&D and strategic initiatives like the ESMC investment.

NXP significantly increased its R&D spending by 12.6% to $2.42 billion, focusing on areas like Advanced Driver-Assistance Systems (ADAS), in-vehicle networks, edge computing, and 5G technologies. Additionally, the company is investing $550 million in the European Semiconductor Manufacturing Company (ESMC) to support advanced manufacturing capabilities in Europe.