NNXPINXP Semiconductors N.V.

NXP makes chips for automotive and industrial markets, where design cycles run for years and supply runs for a decade.

Most revenue comes from automotive electronics: control processors, radar, access systems, in-vehicle networking. A carmaker chooses its supplier during platform development and does not change it for the life of the model, so a design win becomes a revenue stream for many years.

The other side is the same inertia in a downturn: orders fall with a lag and recover with a lag, while carmakers' inventories amplify the swings. Rising electronic content per vehicle is a structural tailwind independent of how many cars are sold.

Beyond automotive the company is strong in secure identification chips — bank cards, passports, transit tickets — and in industrial microcontrollers. Manufacturing is hybrid, partly its own and partly outsourced. NXP pays a dividend and buys back stock.