NXP Semiconductors Automotive Up 10% and Data Center Sales to Double in 2026
NXP Semiconductors reported a 10% growth in its Automotive business in Q1 2026 after adjusting for the sensor sale, driven by double-digit content growth across all regions. Data center revenue is expected to more than double this year, supported by Layerscape and i.MX control-plane products, while first-half bookings rose 15%.
1. Automotive Business Drives Content Growth
The Automotive segment delivered 10% growth in Q1 2026 after adjusting for the sensor sale, led by an architecture-led strategy focused on increasing per-vehicle content rather than unit volume. This structural expansion has generated double-digit content growth since Q4 and achieved year-over-year gains in every region, including China.
2. Data Center Revenue to More Than Double
Exposure in the data center control plane—covering power, cooling, uptime and security—underpins an expected revenue increase of over 100% this year. Key products such as Layerscape networking processors and i.MX board-management solutions drive differentiation with high reliability and low lifecycle requirements.
3. Communications Infrastructure Flat Through 2027
The communications infrastructure segment is forecast to remain roughly flat from 2024 to 2027, with growth in secure cards and RFID offsetting a shift from RF power to digital networking products. Secure cards are projected to comprise about 50% of the segment’s revenue mix as data-center exposure supports recovery.
4. Improved Order Visibility Fuels 15% H1 Growth
Visibility into both direct orders and distributor backlogs has strengthened, supporting confidence in sustained demand. Adjusted for the sensor divestiture, bookings rose 15% in the first half of 2026 versus last year, indicating momentum from company-specific growth drivers will likely continue.