NXP CEO Points to Boost in NFC Business from Design Win; Downplays HCE Threat

Netherlands-based chip supplier NXP Semiconductors reported decreased revenue for its emerging ID unit, which includes its NFC mobile transactions business, but alluded to its design win for the Samsung Galaxy S5. The company also remained optimistic about EMV and denied seeing host-card emulation as a threat.

NXP’s ID segment accounted for $319 million in sales during the quarter, a 3% decrease from the fourth quarter end of 2013 and a 6% increase compared with the same period the previous year.

Emerging ID, which includes NFC controllers and secure elements for mobile handsets, as well as some authentication and possibly cyber-security business, contributed just 15% of total ID revenue for the quarter, or just over $47.8 million. This is the same percentage as in the fourth quarter of 2013. In previous quarters, emerging ID had contributed up to 25% of total ID revenue.