NXP Raises Chip Prices as Automotive Supply Tightens; Q3 Revenue Jumps 19% to $3.79 Billion

NXP Semiconductors (NXPI) raised product prices by about 1% in the third quarter and expects a further 1% increase in the fourth, shifting its full-year pricing outlook from an anticipated decline to roughly flat amid tightening mature-node capacity. The Dutch chipmaker said back-end assembly and test capacity is already tight, with front-end wafer manufacturing potentially tightening in 2027. NXP attributed the increases to higher input costs, noting they have not yet lifted gross margins. Third-quarter revenue rose 19% year over year and 8% sequentially to $3.786 billion, with non-GAAP EPS of $4.20, up 35%. Non-GAAP gross margin reached 58.6%, up 1.6 percentage points, on higher revenue, improved utilization and a richer product mix. Automotive revenue topped $2 billion for the first time, up 17% excluding divested sensor operations, driven by rising per-vehicle chip content from software-defined vehicles rather than higher vehicle output. NXP guided fourth-quarter revenue to a midpoint of $3.85 billion, up 15% year over year, with gross margin of 59%.