NXP CEO Says Google Wallet To Double Company's NFC Chip Sales
Google Inc.'s mobile payment system will help to double sales of NXP Semiconductors NV's near-field communication chips in the next couple of years, but other technological developments promise higher growth rates, according to the Dutch firm's chief executive. (Dow Jones)
NXP is providing the NFC chips for Google Wallet, a service that will allow consumers with Android smartphones to pay for goods and services or receive coupons and offers by waving their device over a special reader.
NFC technology is seen as a growth driver for NXP, but in 2011 NFC will contribute less than 1% of its sales, CEO Richard Clemmer said in a recent interview at the company's headquarters in Eindhoven, in the South of the Netherlands. And despite an expected doubling of its contribution to sales in 2012 and 2013, Clemmer said he doubts that NFC will ever reach a double-digit share of NXP's overall sales which reached $4.4 billion in 2010.