Headquartered in Eindhoven, Netherlands, NXP Semiconductors N.V.'s (NXPI) product portfolio includes microcontrollers, communication processors, analog and interface devices, radio frequency power amplifiers, and security controllers. In comparison, Monolithic Power Systems, Inc. (MPWR) in San Jose, Calif., designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for the computing and storage, automotive, industrial, communications, and consumer applications markets.
According to the U.S.-based Semiconductor Industry Association, global semiconductor industry sales reached a record $555.90 billion in 2021, up 26.2% year-over-year as companies ramped up production to meet high demand amid a worldwide chip shortage. In addition, the European Commission recently announced a new European Chips Act that will allow 15 billion euros ($17.11 billion) in additional public and private investments until 2030, which is also expected to be a boon for the industry. Furthermore, the demand for semiconductors is expected to continue rising as chips become even more heavily embedded in day-to-day technologies. According to the market research group IC Insights, global semiconductor sales are expected to grow at a 7.1% CAGR through 2026. As a result, both NXPI and MPWR should benefit.
