NXP expects demand for automotive chips to be stable in the third quarter, higher than Wall Street expectations.

CTOnews.com, July 25 (Xinhua)-- Semiconductor maker NXP Semiconductor on Monday predicted that its third-quarter revenue and profit will exceed Wall Street's target, and said demand from automakers will slow the impact of the weak consumer electronics market.

With the electrification of electric vehicles and the increased use of advanced driving assistance systems by car companies, global demand for car chips is growing steadily, while the semiconductor chip division of car regulations contributed more than half of NXP's revenue last year.

"We are seeing continued strength in our automotive, core industries and communications infrastructure businesses," said NXP CEO Kurt Sivers. "revenues in these sectors continued to rise in the second quarter."

However, NXP also said demand for products from televisions to smartphones fell sharply, while other parts of the semiconductor industry also fell, putting pressure on all chipmakers, including NXP.

Tuyuan Pexels NXP previously said it did not expect China's export restrictions on certain germanium and silicon products to have a significant impact on it, accounting for about 36 per cent of total revenue in the region, which the company will use in chips in its automotive and communications divisions.

On an adjusted basis, NXP expects revenue for the quarter to range from $3.3 billion to $3.5 billion (CTOnews.com Note: currently about 23.727 billion to 25.165 billion yuan), according to Refinitiv, above analysts' estimates of $3.31 billion.

It also forecasts earnings per share of between $3.39 and $3.82 for the same period, compared with analysts' expectations of $3.43. Revenue for the quarter ended July 2 was $3.3 billion, up from an estimated $3.21 billion. Excluding project factors, NXP's earnings per share were $3.43, exceeding the estimated $3.29.