NXP Semiconductors N.V. Goldman Sachs Communacopia + Technology Conference 2026

Thank you. Thank you, Jim.

Thank you for having us.

Yeah. First of all, thank you for the question. It's good to be here. Yeah, it's been almost a year now. I think what it was very apparent to me, I think, is the market is coming to us. I think my job now as a CEO is to make sure that we go to the market at the same level of speed, right? Not just to participate on this new phase of what's happening with edge devices, but just to lead. I think NXP has spent decades, right, earning credibility with edge devices. Talk about safer cars, smarter factories, more efficient infrastructure. These are systems that value performance, value security, value reliability, and now the world is changing. It's massive value creation in AI, the cloud, and this IP is now moving to the edge.

Now these devices with AI is able to perceive the world, make sense of the world, make decisions, act, become autonomous. That autonomy raises the bar in terms of engineering. These devices usually are going to operate next to us, next to the high-value assets. They don't need just security, right? They need world-class security. They don't need just functional safety. They need world-class functional safety. They don't need to just operate. They need to operate deterministically under all conditions. These are the things that NXP spent decades investing in. We're quite excited about it. Now, the pivot and the transformation that you refer to is, well, there's in three areas, right? The three areas that I'm focused on. One is focusing the portfolio towards this notion of physical AI or intelligent systems at the edge.

That means divesting things that don't point that way or doubling down on areas and talent and IP that helps us get there faster. The second thing that was a realization that intelligent systems is complex for our customers. They have compute, they have analog, they have sensors, they have all sorts of technology that needs to come together, and that complexity creates an obstacle. We needed to make sure that this obstacle gets removed. We invested heavily in systems. We are now looking at our roadmap, not only from a component perspective, but from a system perspective. That's the second change. The third one is a little bit more of an internal change, but it's just we need to keep pace with innovation and with the speed of the world. That means our intensity of execution needs to go up.

Significant effort internally and to synergize IP development, make sure that we have transversal technology that applies to different markets, that we reuse, that we don't overlap. Very, very ambitious and aggressive deployment of AI tools to actually increase productivity, and we're already start to seeing it in our output. That's the change, right? The change is moving to what intelligent is, and that's the pivot that we're making with the company.

I think my perspective is NXP has the most comprehensive automotive roadmap and portfolio. Processors, analog, sensors and radar, connectivity, both wireless and wire. Battery management and electrification. It's a quite comprehensive portfolio, and the whole point of this comprehensive portfolio is not just to sell a bag of components. It's about really deploying those assets with a system solution, because this is a massive transformation that is happening in automotive. This adoption of, I mean, two areas. First one and most important one is the adoption of software-defined architectures, and the other one is autonomy. Both of them are having a massive transformation. The investment that we have right now, I think, is very well-positioned for these two mega trends.

Well, let's start with the most transformative one, that is the software-defined vehicle. I think the software-defined vehicle is I think it's underappreciated in terms of how the transformative aspect of adopting this technology or this architecture. The whole notion that you go from these hardware-bound static functions, to a more dynamic digital platform that can continue to be updated over time. It's creating just a massive transformation in the industry and it's bringing a lot of content growth. You're removing all these low-end hundreds of ECUs and MCUs scattered all over the place, isolated, developed by different people, different companies, to a kind of common platform where you aggregate all this with higher performance processors. The roadmap of NXP is a roadmap for that future, where all this aggregation of all these disparate ECUs are happening with high performance processors.

They are real time, and it brings new challenges and new opportunities. These processors are not just processors, they are networking products. Because now you aggregated all these Electronic Control Units, and they have to connect all these sensors. There is a massive opportunity to create a new class of products, which NXP is already ahead with 16 nanometers for zonal products and 5 nanometers for central compute platforms. I think that the roadmap of NXP, and I am quite bullish on it, is primed for the architectures that are being adopted right now by our customers. I think that is the most transformative aspect of the growth drivers that we have, which is software-defined vehicle. Of course, radar, as autonomy improves and we go to level 3, level 4, you will need more sensors, including radar.

We have electrification as one of our growth drivers, and then connectivity, but software-defined vehicle is the largest of all of them. By the way, if you put all these accelerated growth drivers in Q2, they were very close to 50% of our revenue already. These accelerated growth drivers of automotive kind of indicate the portfolio that is tap into the secular drivers of growth in automotive. These, by the way, they were growing close to 20%. We have half of the portfolio in automotive growing at 20%+, and so quite exciting and tied to secular drivers. You have two impacts in this portfolio. You have the content growth, but I also think is underappreciated is that the leadership on these products also is going to generate share gains. These two are going to compound, and they are quite important for NXP.