The Eindhoven-based chip manufacturer NXP saw a significant drop in profits and revenue last quarter. Profits even decreased by 32 percent. The former semiconductor division of Philips primarily supplies chips for smartphones and cars. These products are selling worse worldwide due to economic uncertainty.
It is the fifth consecutive quarter that NXP has experienced shrinking profits and revenue. The Eindhoven-based company recorded a profit of 445 million dollars (384 million euros). Revenue last quarter amounted to 2.9 billion dollars, which is 6 percent less than in the same period a year ago.
NXP itself speaks of “solid profitability.” The company warned at the end of April that the volatile trade policy of the United States would cause “very uncertain circumstances.” The chipmaker believes that revenue will therefore continue to decline this year.
The sale of chips to China is particularly disappointing. The Asian country is struggling with a faltering economy, causing manufacturers to hold back on spending. Fewer smartphones and cars are being sold worldwide anyway.
NXP announced earlier this year that it wants to close several factories worldwide, including the location in Nijmegen, where 1,700 people work. The closure is expected to take place over the next ten years.