NXP targets investment of approximately 16% of revenue in non-GAAP* R&D every year, primarily focused on the team members who create our intellectual property, products, and customer solutions. NXP's breakthrough technologies help to create a connected world that is better, safer, and more secure – targeting edge devices for the automotive, industrial, smart home, communications, infrastructure, and mobile markets.
* Reconciliations of non-GAAP research and development to GAAP research and development can be found in the Investor Relations section of our website at Financial Results .
Developing Thought Leaders
2022 R&D Team Member Advancements
14% R&D Team Members Promoted
49 Technical Directors Named
7 Program Directors Named
1 Program Senior Director Named
9 Fellows Named
957 Individual Patents Aawarded
Our commitment to developing thought leaders is evidenced by the more than 10,000 team members (representing 34% of our NXP workforce and 56% of our IDL workforce) who are specifically dedicated to R&D. Through broad exposure to job-based development activities, we were able to advance 14% of these team members in 2022 through internal promotions. In addition, we hired 3,185 new R&D team members, and named 49 technical directors, one program senior director, seven program directors, and nine fellows.
To enable in-depth analysis of the current R&D workforce baseline and support our strategic R&D workforce planning, we updated our R&D job structure with more defined job descriptions and specific skill domains. R&D team members have been transitioned into the new job profiles, providing valuable data on the R&D population and helping us to better assess and develop the skills and capabilities of these team members across NXP. The new insights establish the baseline for internal discussions. For example, R&D Talent 2027 was one of the topics shared during our 2022 Strategic Planning Alignment (SPA) meetings, in which the NXP Management Team discussed strategic plans for the next five years. As a follow up to the SPA, workforce planning insights were discussed with the R&D Management Team for the longer-term strategy of building R&D talent for the future.
To further develop the R&D community, we expanded the NXP R&D Academy, offering a variety of learning opportunities. We have dedicated development programs in the areas of architecture, functional safety, design quality, cryptography, security, artificial intelligence, and ideation.
Many of our R&D team members participated in an NXP school and other development activities:
The NXP Architecture and System Engineering (ASE) School continues to offer ASE 1 (Basic) and ASE 2 (Advanced) courses. The ASE School was created to develop technical experts, architects, and systems engineers and help them deliver top-rated hardware and software solutions according to current and future market demands. Ultimately, the ASE School offers exposure to the latest technology trends through enriching technical sessions and thought-provoking workshops led by internal experts and selected external partners. The desired result is to expand our pool of technical talent and make our current and future Architectural or System Engineers more effective. To date, we have 461 nominations and 131 graduations for the ASE School.
The NXP Safety Academy helps team members explore safety products and enablement collateral to simplify compliance with the ISO 26262 standard. Coursework helps team members understand safety deliverables and evaluate how they can help accelerate time to market. Safety documents are often large and complex, so understanding what type of information is included and how to use the information helps us save the customer valuable development time. Four different on-demand learning paths have been defined to give team members the opportunity to gain expertise and more quickly design safety-critical automotive applications. In total, approximately 13,000 training modules have been completed.
We launched the NXP School of Artificial Intelligence (AI) in mid-June 2022 and already have 143 nominations. The School of AI aims to empower NXP engineers by equipping them with cutting-edge AI technology concepts and allowing them to develop an edge over industry peers to lead NXP forward. These engineers will be able to learn and apply AI concepts in their respective domains. The long-term vision is to produce 100 AI-trained technologists every year. The first cohort includes 50 participants in Level 1 (AI Basic Learning).
The NXP School of Ideation is a course curriculum designed to bring out ideas and stimulate the flow of innovation at NXP via various workshops. Launched in mid-2022, the school offers various online and in-person workshops that have already been attended by more than 170 participants. In each workshop, students learn to deeply understand a problem (and be sure it is a problem worth solving), come up with a range of possible solutions, and then test those solutions. Students use a structured process to learn how to turn their abilities and ideas into practice.
We also offer trainings and regular webinars, allowing our R&D community to grow their knowledge and stay up to date with the recent technology developments and innovations. For example:
We hosted the 2XP, a session that allows NXP experts to share their work and recent insights with their peers. We also introduced the Distinguished Lecturer Series (DLS) as an extension of the 2XP webinars that gives people external to NXP, including professors, suppliers, and customers, a way to discuss exciting, emerging technical developments with our R&D community. In 2022, there were 21 2XP sessions (with three presentations each) and 12 Distinguished Lecturer sessions, which collectively engaged more than 2,700 attendees.
Some other examples of programs and initiatives on a global or local scale that stimulated innovation and growth in 2022:
We continued the Technical Leadership Program in India, which had 81 team members participate. Thirty-one of the participants were part of a mentoring program that paired them with technical NXP leaders.
NXP continued to engage with startup incubators such as Startup Autobahn and Silicon Catalyst to nurture new and emerging technologies that have the opportunity to drive the next wave of innovation and growth for the semiconductor industry and society at large.
We hosted the Artificial Intelligence in Mobility (AIM) event, an online smart car race challenge (season two) that had more than 450 platform registrations, and participation from more than 220 premiere institutions from throughout India, giving us 100-plus qualifying teams. Fifteen teams impressed the panel at the pre-finale round and, from there, just four teams moved on to the Grand Finale stage.
Via the NXP University Council, we continued to drive cooperation with the academic world and build an active network between NXP and universities. The Council supports local teams to establish cooperation contracts, support recruitment, and promote NXP products for student use.
To stimulate knowledge transfer, we continued to have a number of NXP Fellows who act as part-time professors at several universities, which creates another strong link between the university and NXP, and is beneficial for all involved.
Project and Program Managers (PMs)
We continue to build momentum with our support for Project and Program Managers (PMs). In Q4 2022, we launched the fifth group for the R&D Project Leadership Program and kicked off the PM Masterclass 1 session in August 2022. Looking ahead to 2023, we will launch additional PM Masterclass 1 sessions and intend to introduce the PM Masterclass 2 session for higher-level team members.
Our process for new product introductions is complex, requiring large investment as well as successful, timely, and efficient completion. Our PM talent is vital to our ability to drive these projects to completion, hence NXP has placed greater focus to further invest in skilled and capable project leaders. For example, the company organized a summit for our key PM leaders, during which we focused on harmonization, the PM role model, community building, and skill building. Our consistent focus on R&D and innovation resulted in NXP being awarded 957 individual patents during 2022.
*The terms G3, G4, G5, etc. refer to job grades within NXP.
NXP anticipates expanding our schools to include the School for System on a Chip (SoC) Development, as well as continuing its focus on invention and innovation as a key competitive advantage.
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