Is 2013 Finally NXP Semiconductor's Year to Ride NFC?

NXP Semiconductor  (NASDAQ: NXPI  ) CEO Rick Clemmer is optimistic that 2013 will be the year that near-field communications, or NFC, takes off. As the leading supplier of NFC chips, NXP has been waiting for this trend to gain meaningful traction. Clemmer even believes his company will outpace the broader market by 50%. Google  (NASDAQ: GOOGL  ) sparked the interest recently in using NFC for mobile payment solutions, but the technology faces a chicken-and-egg problem among merchants and consumers. Apple  (NASDAQ: AAPL  ) has decided not to use NFC in the iPhone 5, which some industry watchers were hopeful of since that would have catalyzed further adoption. Even if NFC starts gaining ground, competitors like Skyworks Solutions  (NASDAQ: SWKS  ) could cross-sell to Apple for NFC wins.

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  • Report this Comment On November 15, 2012, at 3:16 AM, 1golfdoc wrote:

    just recently, the galaxy 3 was showing they were the number 1 phone for sales worldwide beating apple. they have the nfc chip in their phone. i believe the nfc technology is being more adopted in other countries. just in its infancy, this technology will continue to grow. invested in nxpi because of their patent portfolio, definitely a long term play for me. the nfc technology is only a small portion of revenues currently for nxpi.

  • Report this Comment On November 16, 2012, at 9:47 AM, timboline wrote:

    NFC has been talked about for years and rightly so. It has the potential to upset the balance of power between payment associations, carriers, handset manufacturers and the Internet giants.

    Forecasts for NFC growth have been consistently wrong for years, but the fact that it is still there and now growing fast after so many years is proof of the significance of this technology.

    The absence of Apple from the market is also significant, but also consider the fact that after years of NFC phones being prototyped and abandoned, the first widely available NFC phone, the Nexus S, was only released in the last 3 weeks of 2010. Since then another 20 models whee released in 2011 and a further 55 to date in 2012. including the best selling Galaxy S III. NXP have a dominate share of this market (>90%?). Most Windows 8 phones are likely to have NFC and I believe that all the Windows 8 phones use the NXP chip so far.

    So looking at the facts I think the NXP CEO's statements are at the very least credible.

    As for Skyworks Solutions, I have never heard of them as an NFC supplier. NXP will have more competition from people like Broadcom, TI, INSIDE Secure, but not from Skyworks Solutions I think. I any case it will be very hard to catch up with their huge lead in that market segment.

  • Report this Comment On November 16, 2012, at 10:51 AM, agingfast wrote:

    I concur with all of the above. So, any reason why NXPI dropped like a stone yesterday?

  • Report this Comment On November 16, 2012, at 12:05 PM, agingfast wrote:

    Possibly just answered my own question http://nfctimes.com/news/google-drops-nxp-favor-broadcom-nfc... Can NXPI bounce back from this in say, next 6 months? Love my NXPI but the ups & downs make me crazy.

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