NXP Semiconductors Names President Sievers as New CEO

NXP's former CEO, Richard Clemmer, will stay on as a strategic adviser.
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U.S.-Dutch chipmaker NXP Semiconductors  (NXPI) - Get Report named Kurt Sievers as its new CEO Wednesday, effective immediately.

Sievers replaces Richard Clemmer, who will remain a strategic adviser to NXP. Sievers, a 25-year veteran of NXP (originally known asPhilips Semiconductors), was named president of the company in 2018. He will continue in that position.

“His expertise across business segments, passion for innovation and connections with NXP investors, customers, and employees around the world make Kurt the right leader to continue and build on the company’s successful strategy for years to come,” Peter Bonfield, chairman of NXP’s board, said in a statement.

NXP focuses on secure connectivity solutions for embedded applications. Its specialties include the automotive, industrial and Internet of things, mobile, and communication infrastructure markets.

Morningstar analyst Brian Colello had a mixed take on NXP’s first-quarter earnings report last month.

“Narrow-moat NXP’s first-quarter results fell slightly below our revenue and profitability expectations, and management’s guidance for the second quarter indicated a weaker rebound than previously anticipated,” he wrote in a commentary.

“Driven by the economic uncertainty concerning Covid-19, demand slowed across all end markets and manufacturing facilities were shut down throughout the supply chain. We will maintain our $130 fair value estimate, as we remain optimistic on NXP’s long-term growth prospects.”

NXP recently traded at $102.14, up 0.13%. The stock has slid 14% in the last three months but has gained 12% over the last year.

“We believe the firm has a durable position in the automotive, industrial, and communications infrastructure markets due to a combination of switching costs and intangible assets,” Colello said.