Nexperia revenue rises 18 percent amid China operational split

Nexperia reported a significant revenue increase in the second quarter, reaching $355.6 million, an 18 percent rise compared to the first quarter. This growth occurs as the company navigates a structural split from its Chinese operations following diplomatic tensions and government intervention in the Netherlands.

Interim CEO Stefan Tilger stated that the results demonstrate the effectiveness of recent internal measures, noting improvements in profitability and cash flow. The company is benefiting from increased demand in the artificial intelligence, data center, automotive, and industrial sectors.

To compensate for the loss of Chinese production capacity, Nexperia is aggressively expanding its manufacturing footprint in Southeast Asia. The company expects to increase its processing capacity in Malaysia by 50 billion chips by the end of the year, alongside capacity expansions in the Philippines.