NXP Semiconductors (NXPI) Risk Factor Changes

Recent examples include the OECD’s initiatives to revise profit allocation and nexus rules to allocate more taxing rights to countries where companies have their markets and to establish a minimum tax rate on a global…

We sponsor defined benefit pension plans in a number of countries, and a significant number of our employees are covered by our defined benefit pension plans.

The stock market in recent years has experienced significant price and volume fluctuations that have often been unrelated to the operating performance of companies.

•exposing us to the risk of increased interest rates in the event we have borrowings under our $2,500 million revolving credit facility agreement (the “RCF Agreement”), which was restated to $3,000 million as per Febr…

As of December 31, 2025, we had outstanding indebtedness with an aggregate principal amount of $12,290 million.

We have from time to time received, and may in the future receive, communications alleging possible infringement of patents and other intellectual property rights of others.

Our success and future revenue growth depends, in part, on our ability to protect our proprietary technology, our products, our proprietary designs and fabrication processes, and other intellectual property against mi…

As part of our hybrid manufacturing strategy, we have entered into a number of long-term strategic partnerships with other leading industry participants and may do so again in the future.

As is the case with other large semiconductor companies, we receive subsidies and grants from governments in some countries.

Our manufacturing operations depend on deliveries of equipment and materials in a timely manner and, in some cases, on a just-in-time basis.

We manufacture, in our own factories as well as with third parties, our products using processes that are highly complex, require advanced and costly equipment and must continuously be modified to improve yields and p…

We make highly complex electronic components which in many cases are enabled by software and, accordingly, there is a risk that defects may occur in any of our products.

Our working capital needs are difficult to predict and may fluctuate.

•geopolitical tension and disputes, as well as resulting adverse changes in government policies, especially those affecting global trade and investment, including trade protection and national security policies or pla…

If this trend continues, in order to continue profitably supplying these products, we must reduce our production and procurement costs in line with the lower revenue we can expect to generate per unit.

One of the results of the rapid innovation in the semiconductor industry is that pricing pressure, especially on products containing older technology, can be intense.

Commitments to develop new products must be made well in advance of any resulting sales, and technologies and standards may change during development, potentially rendering our products outdated or noncompetitive befo…

In addition, AI and machine learning are still in relatively early stages, and the introduction and incorporation of AI technologies may result in unintended consequences or other new or expanded risks and liabilities.

It is difficult for us, our customers and suppliers, to forecast demand trends.

can result in overcapacity, which can lead to a reduction in prices and margins.

The Dutch government has enacted new legislation in response to and based on such EU directive.

The stock market in recent years has experienced significant price and volume fluctuations that have often been unrelated to the operating performance of companies.

Our success and future revenue growth depends, in part, on our ability to protect our proprietary technology, our products, our proprietary designs and fabrication processes, and other intellectual property against mi…

As is the case with other large semiconductor companies, we receive subsidies and grants from governments in some countries.

We manufacture, in our own factories as well as with third parties, our products using processes that are highly complex, require advanced and costly equipment and must continuously be modified to improve yields and p…

Our working capital needs are difficult to predict and may fluctuate.

economic conditions, our business, financial condition and results of operations could be materially adversely affected, and the resulting economic decline might disproportionately affect the markets in which we parti…

1 The contents of our website, our Corporate Sustainability Report, and our Sustainability Policy are referenced for general information only and are not incorporated by reference into, and do not form a part of, this…

on the projected benefit obligations and net periodic pension costs.

Effective October 28, 2025, Kurt Sievers voluntarily retired as our CEO and executive director and Rafael Sotomayor succeeded Mr.

that we seek legal or judicial enforcement of our intellectual property rights under the laws of such countries.

difficulties or change their business strategies, they may no longer be able or willing to participate in these groups or alliances, which could have a material adverse effect on our business, financial condition and…

Additionally, our acquisitions and other strategic investments may require approval by government agencies in applicable jurisdictions in which we operate.

Environmental and other disasters, such as flooding, heavy precipitation large earthquakes, volcanic eruptions or nuclear or other disasters, or a combination thereof may negatively impact our business.

semiconductors or software, or the consumer products based on them malfunction and result in personal injury or death.

In 2025, the U.S.

Recently announced and future tariffs and other trade restrictions could materially and adversely affect our business, financial condition and results of operations.

on products and services for those areas, which may give them a competitive advantage.

Historically, the relationship between supply and demand in the semiconductor industry has caused a high degree of cyclicality in the semiconductor market.