NXP Semiconductors is poised to generate between 8% and 10% of its revenue from India by 2030, driven by the growing demand in the country’s automotive and industrial sectors. Hitesh Garg, head of NXP India, shared this projection at an industry event in Bengaluru, emphasizing that the next three to five years will be crucial for the company as it targets significant revenue growth in the region.
While NXP currently does not disclose its revenue from India, the company views the country as an increasingly important market. India’s expanding automotive industry and the rise of industrial applications for chips are expected to fuel this growth. As a result, NXP is positioning itself to capture market share in the region, which is still a small but fast-growing segment for many global chip manufacturers.
This strategic focus on India comes at a time when NXP’s sales in China have faced uncertainty due to geopolitical tensions, including the expansion of Chinese production in older chip technologies and European tariffs on Chinese electric vehicles. In 2023, China represented nearly a third of NXP’s $13.28 billion in sales, with the rest of the Asia-Pacific region accounting for nearly 30%. Garg indicated that any missed opportunities in one market could be offset by expanding in others, like India.
India’s semiconductor industry is still in its early stages, but the government has been working to establish a robust ecosystem, with initiatives like a $10 billion incentive package aimed at growing the local chip market. The country expects its semiconductor market to reach $63 billion by 2026, despite not yet producing its own chips. In September, NXP announced a $1 billion investment in India, which includes a major boost to its research and development efforts. Other companies like Micron are also making investments in the Indian market, signaling growing confidence in the region’s potential.