At Goldman Sachs' 2026 TMT conference, NXP and SiTime management said industrial
and automotive end markets are recovering, driven by inventory destocking,
higher chip content per unit and steady demand improvement. NXP said industrial
and IoT are the best-performing markets YTD and automotive is rebounding;
Roughly 50% of Q2 automotive revenue came from software-defined vehicles, radar
and connectivity, which are growing about 20%. NXP reported rising backlog and
lengthening lead times, increasing revenue visibility, but said OEMs have not
broadly begun restocking and channel inventories remain low. Demand is stronger
in data center and aerospace/defense: NXP expects data-center revenue to more
than double in 2026, and SiTime said recent annual revenue from defense and
aerospace is around $100m with scope to double over the next two years.
