News: Microelectronics
19 May 2025
Nexperia reports resilient annual performance and positive outlook amid market headwinds
Amid persistent macroeconomic uncertainty and cyclical market softness, discrete device designer and manufacturer Nexperia of Nijmegen, the Netherlands (which operates wafer fabs in Hamburg, Germany, and Hazel Grove Manchester, UK) says that in fiscal year 2024 it demonstrated resilience, achieving stable revenues and maintaining profitability through a strong focus on execution and a commitment to innovation.
Revenue was $2.06bn. Market share, in the firm’s defined markets, increased from 8.9% in 2023 to 9.7% in 2024. Net income surpassed Q1/2024 by +$32m (excluding the sale of Newport Wafer Fab).
Nexperia says that during the fiscal year it celebrated key milestones that underscore its commitment to technological innovation and long-term growth. Most notably, it marked the 100th anniversary of its Hamburg site in Germany — a historic hub of engineering excellence — where it made substantial investments in next-generation manufacturing capabilities, specifically in silicon carbide (SiC) and gallium nitride (GaN) technologies.
As part of its long-term strategy, Nexperia also continues to increase its R&D spending, which grew by 6.2% in 2024, underscoring its focus on advancing high-performance semiconductors for automotive, industrial and energy-efficient applications. This investment supports innovation in wide-bandgap technologies such as SiC and GaN, as well as upgrading and expanding the firm’s product portfolio in power discretes, modules, analog and power ICs.
In a year of transition and transformation, strategic changes in fiscal 2024 included the realignment of business groups to sharpen focus on innovation and value creation, as well as the addition of new executive leadership to guide the next phase of development.
For fiscal 2025, Nexperia maintains a positive outlook, supported by improving gross margin and cash flow. These positive trends, already evident in Q4/2024 and continuing into Q1/2025, reflect early signs of recovery and renewed operational momentum, adds the firm.
Guidance for the next year acknowledges that the market will continue to present challenges, but Nexperia expects to maintain financial momentum, amplified by ongoing improvements in operational efficiency and a strong position in the automotive sector. Given the essential role of semiconductors in the global megatrends of electrification, digitalization, automation and the green energy transition, Nexperia reckons that it is well positioned to capitalize on long-term demand. For example, driven by the exponential growth of artificial intelligence applications across industries, demand for semiconductors in AI servers is surging. Nexperia therefore sees opportunities in servers, smartphones, computers and industrial automation.
“Shifts in global demand, particularly in the electronics and automotive sectors, will have a greater impact than any direct regulatory measures,” believes chief technology officer Stefan Tilger. “As customers reevaluate their production strategies, a flexible response will be essential. While trade dynamics and pricing pressure continue to influence the industry, Nexperia benefits from a robust global infrastructure and experienced teams that consistently deliver with reliability, agility and a focus on innovation. Being externally debt free further strengthens our resilience and ability to invest strategically,” he adds.
“Our technology powers the systems that drive energy efficiency, electrification and smarter infrastructure across industries,” notes chairman & CEO Zhang Xuezheng (Wing). “As global demand for sustainable solutions continues to grow, our business is uniquely positioned to deliver the innovation, scale and reliability needed to support this transformation,” he adds. “We are encouraged by recent positive developments and remain focused on long-term value creation.”
Nexperia says it is also committed toward its sustainability goals, ensuring that responsible business practices remain central to its strategy. The firm aims to be carbon neutral for Scope 1 and 2 emissions by 2035.
Nexperia launches automotive-qualified 1200V SiC MOSFETs in D2PAK-7 packaging
Nexperia launches 1200V SiC MOSFETs in top-side-cooled X.PAK packages
Nexperia adds 12 devices to e-mode GaN FET portfolio
Nexperia investing $200m in Hamburg site to add wide-bandgap semiconductors
Vishay completes acquisition of Nexperia’s Newport Wafer Fab following UK Government approval
