NXP’s secure interface and infrastructure segment
In the previous part of this series, we saw that NXP Semiconductors (NXPI) is witnessing strong growth in the SCD (Secure Connected Devices) segment as the adoption of smartphones and wearables increase. The company not only provides chips for connected devices but also provides chips for the infrastructure that supports these devices.
The SI&I (Secure Interface and Infrastructure) segment offers digital networking processors, secure interface and system management products, smart antenna solutions, and high-performance RF (radio frequency) power amplifiers.
SI&I revenue trend
The Freescale acquisition increased SI&I revenue by 50% in fiscal 1Q16 and since then, the segment has been reporting growth. The segment’s revenue rose 8% sequentially to $476 million in fiscal 3Q16 due to seasonal growth in handsets.
For fiscal 4Q16, NXP Semiconductors (NXPI) expects the SI&I segment’s revenue to fall 2%–3% sequentially due to seasonal weakness. Even Xilinx (XLNX) and Qualcomm (QCOM) are witnessing a slowdown in the communications infrastructure space.
SCD and SI&I revenues derive their growth from the smartphone and wearable markets. However, growth in SI&I is hard to predict as its demand depends on the need for more stations that support data. NXP Semiconductors is securing design wins in the enterprise wireless access and switching space.
The NXPI–Qualcomm integration could increase the reach of SI&I and bring cross-selling opportunities for NXP.
NXP launches new WLAN LNA+Switch
In January 2017, NXP launched a new WLAN (wireless local area network) LNA (low-noise amplifier) with Integrated Switch that provide faster and reliable Wi-Fi connection on smartphones, wearables, and other small IoT (Internet of Things) devices.
The new WLAN is built using NXP Semiconductors’s high-performance QUBiC eighth-generation Silicon Germanium technology. It uses higher throughput standards such as the 802.11ac 1 Gbps standard to improve WLAN applications’ receive sensitivity.
Next, we’ll look at NXP’s Secure Identification Solutions segment.