Financial Analysis

"Commitments and Contingencies Purchase Commitments The Company maintains purchase commitments with certain suppliers, primarily for raw materials, semi-finished goods and manufacturing services and for some non-production items. Purchase commitments for inventory materials are generally restricted to a forecasted time-horizon as mutually agreed upon between the parties. This forecasted time horizon can vary for different suppliers. As of June 28, 2026, other than foundry joint venture commitments, the Company had purchase commitments of $2,908 million, which are due through 2044 . Foundry Joint Venture Commitments Driven by our investment in VSMC, NXP has committed to invest an additional $653 million in equity through 2027. NXP has committed to contribute an additional $102 million to support the long-term capacity infrastructure that is expected to be paid through 2026. In addition, NXP has an agreed purchase commitment with VSMC that over the lifetime of the factory the minimal loading will be between 80% - 90%, resulting in a total purchase commitment of approximately $14,096 million that is expected to be purchased over 37 years once wafer production starts. Related to our investment in ESMC, NXP has committed to invest an additional $379 million in equity through 2029. Lease Commitments The Company has operating and finance lease arrangements related to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Commercial Paper We have a $2 billion Commercial Paper Program to support general corporate purposes. As of June 28, 2026, we had no commercial paper notes outstanding (December 31, 2025: no notes outstanding). Debt issuance and redemption On April 20, 2026, we repaid the $750 million aggregate principal amount of outstanding 3.875% senior unsecured notes due June 18, 2026, at par using available cash. Long-term debt The following table summarizes the outstanding debt as of June 28, 2026, and December 31, 2025: June 28, 2026 December 31, 2025 Maturities Amount Interest rate Amount Interest rate Fixed-rate 5.35% senior unsecured notes Mar, 2026 5.350 500 5.350 Fixed-rate 3.875% senior unsecured notes Jun, 2026 3.875 750 3.875 Fixed-rate 3.15% senior unsecured notes May, 2027 500 3.150 500 3.150 Fixed-rate 4.40% senior unsecured notes Jun, 2027 500 4.400 500 4.400 Fixed-rate 4.30% senior unsecured notes Aug, 2028 500 4.300 500 4.300 Fixed-rate 5.55% senior unsecured notes Dec, 2028 500 5.550 500 5.550 Fixed-rate 4.3% senior unsecured notes Jun, 2029 1,000 4.300 1,000 4.300 Fixed-rate 3.4% senior unsecured notes May, 2030 1,000 3.400 1,000 3.400 Fixed-rate 2.5% senior unsecured notes May, 2031 1,000 2.500 1,000 2.500 Fixed-rate 2.65% senior unsecured notes Feb, 2032 1,000 2.650 1,000 2.650 Fixed-rate 4.85% senior unsecured notes Aug, 2032 300 4.850 300 4.850 Fixed-rate 5.0% senior unsecured notes Jan, 2033 1,000 5.000 1,000 5.000 Fixed-rate 5.25% senior unsecured notes Aug, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenue disaggregated by sales channel: For the three months ended For the six months ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Distributors 2,072 1,636 3,934 3,160 Direct 1,375 1,257 2,657 2,541 Other 49 33 86 60 Total - Revenue 3,496 2,926 6,677 5,761

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Fair Value Measurements The following table summarizes the estimated fair value of our financial instruments which are measured at fair value on a recurring basis: Estimated fair value Fair value hierarchy June 28, 2026 December 31, 2025 Assets: Money market funds 1 1,886 1,757 Marketable equity securities 1 5 1 Derivative instruments-assets 2 3 9 Earn-out receivable 3 44 Liabilities: Derivative instruments-liabilities 2 (13) (11) The following methods and assumptions were used to estimate the fair value of financial instruments: Assets and liabilities measured at fair value on a recurring basis Money market funds (as part of our cash and cash equivalents) and marketable equity securities (as part of other non-current assets) have fair value measurements which are all based on quoted prices in active markets for identical assets or liabilities. For derivatives (as part of other current assets or accrued liabilities) the fair value is based upon significant other observable inputs depending on the nature of the derivative. The earn-out receivable is related to our previously divested MEMS sensor business and is measured at fair value using Level3 inputs. Assets and liabilities recorded at fair value on a non-recurring basis We measure and record our non-marketable equity securities, equity method investments and non-financial assets, such as intangible assets and property, plant and equipment, at fair value when an impairment charge is required. Assets and liabilities not reco …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Tax Our provision for income taxes for 2026 is based on our EAETR of 19.7%, which is lower than the Netherlands statutory tax rate of 25.8%, primarily due to tax benefits from the Netherlands and foreign tax incentives. For the three months ended For the six months ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Tax benefit (provision) calculated at EAETR (189) (112) (469) (231) Discrete tax benefit (provision) items (4) 8 (15) Benefit (provision) for income taxes (189) (116) (461) (246) Effective tax rate 19.4 % 19.3 % 19.3 % 20.0 % The effective tax rate of 19.4% for the second quarter of 2026 was lower than the EAETR due to a recapture tax benefit effect. For the first six months ended June 28, 2026, the effective tax rate of 19.3% was lower than 19.7% due to the income tax benefit for discrete items of $8 million. The discrete items are primarily related to the impact of foreign currency on income tax related items and changes in estimates for previous years. The effective tax rate for the first six months of 2026 was 19.3% compared to 20.0% for the same period in 2025, with discrete items in the respective periods impacting the rates accordingly. Excluding discrete items, the EAETR increased to 19.7% in 2026 from 18.8% in 2025, mainly as a result of a taxable capital gain and non-deductible goodwill associated with the divestiture of the MEMS Sensors business in the first quarter of 2026. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent accounting standards Accounting standards not yet adopted In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses. The standard requires disaggregated disclosure of income statement expenses. It requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the effect of this new guidance on our Consolidated Financial Statements. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.

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Related-Party Transactions The Company's related parties are the members of the board of directors of NXP Semiconductors N.V., the executive officers of NXP Semiconductors N.V. and equity-accounted investees. The following table presents the amounts related to revenue and other income and purchase of goods and services incurred in transactions with these related parties: For the three months ended For the six months ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Revenue and other income 1 1 2 2 Purchase of goods and services 1 1 The following table presents the amounts related to receivable and payable balances with these related parties: June 28, 2026 December 31, 2025 Receivables 1 Payables 2 3 Driven by our investment in VSMC, NXP has committed to contribute $1,200 million to support the long-term capacity infrastructure, and in exchange NXP secures a capacity commitment over the lifetime of the factory. NXP has contributed $243 million during the six months ended June 28, 2026, and $1,098 million to-date, which is recorded in other non-current assets. Refer to Note 5 Supplemental Financial Information for information on the total carrying value of investments in equity-accounted investees, and to Note 12 Commitments and Contingencies for NXPs related party commitments. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring At each reporting date, we evaluate our restructuring liabilities, which consist primarily of termination benefits, to ensure that our accruals are still appropriate. The following table presents the changes in restructuring liabilities in 2026: As of January 1, 2026 Additions Utilized Released Other changes As of June 28, 2026 Restructuring liabilities 270 3 (85) (9) (3) 176 The total restructuring liability as of June 28, 2026, of $176 million is classified in the Consolidated Balance Sheet under current liabilities ($111 million) and non-current liabilities ($65 million). The Company has ongoing restructuring initiatives aimed at streamlining manufacturing capacity, reducing costs, and aligning resources with strategic priorities. These initiatives primarily consist of workforce reductions, facility consolidations, and other cost-saving measures. During the first six months ended June 28, 2026, the restructuring provision decreased by $94 million, primarily reflecting the execution of previously announced involuntary restructuring programs of $85 million and a release for earlier programs of $9 million. The restructuring charges for the six-month period ending June 29, 2025, primarily consist of $86 million for personnel related costs for specific targeted actions, offset by a $5 million release for an earlier program. These restructuring charges recorded in operating income, for the periods indicated, are included in the following line items in the Statement …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Significant Accounting Policies and Recent Accounting Pronouncements Significant Accounting Policies For a discussion of our significant accounting policies, see Part II Item 8. Financial Statements and Supplementary Data Notes to Consolidated Financial Statements Significant Accounting Policies of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2025. Recent accounting standards Accounting standards not yet adopted In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses. The standard requires disaggregated disclosure of income statement expenses. It requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the effect of this new guidance on our Consolidated Financial Statements. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements. …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing