Business Continuity Management

NXP prepares and plans for interruptions affecting all or part of the organization, so we can minimize the effects of potential incidents and ensure the ability to continue business operations.

Management Plan

The Business Continuity Management Plan  is modeled on two documents, the International Organization for Standardization's ISO 22301 and the International Automotive Task Force's IATF 16949 Section 6.1.2.3.

Management Plan Image

Governance

NXP's Business Continuity Management Office (BCMO) is the global coordinator for the Business Continuity Plan. The BCMO is responsible for providing guidance and standardization for development of the Business Continuity Plan, along with testing and maintaining a solution for centralized access to the plan. The BCMO provides periodic status reports to senior management.

Approach

Our comprehensive approach to business continuity and risk management includes an executive-level team that receives reports from individual site teams with specific business-resumption activities.

During a crisis, all groups interact with each other and, if necessary, escalate issues to the Corporate Business Continuity Team.

Corporate Business Continuity and Crisis Management

Site Assets

Site, Utilities and Natural Hazards

  • Identify, execute and measure
  • Recover/restart crucial business processes
  • Business impact assessments
  • Likelihood impact and recovery time
  • Conduct training and drills

Product Supply Continuity

Material Delivery

  • Identify, analyze and evaluate dual sourcing
  • Ensure product supply
  • Communicate potential interruptions

Procurement Continuity

Product Delivery

  • Assess, decide and respond for material supply
  • Communicate potential interruptions

Protection of Information

IT Systems

  • Identify, and coordinate procedures
  • Initiate service restoration
  • Communicate

Due Diligence

When assessing how an event will impact the business, we focus on likelihood, impact and recovery time. Each attribute receives a numerical score (we use data from Maplecroft - an insurance risk analytics company) and assessments are reviewed at least annually. Each site team defines, executes and measures the results of risk-mitigation actions in order to reduce the likelihood and/or impact of identified risks.

The results of our natural-hazard scores for each manufacturing site, shown below, are incorporated into the full business-impact assessment. The scores demonstrate likelihood of occurrence, but without scores for recovery time.

Business-Impact Assessments

Wafer Fab Assembly and Test
Arizona US Singapore Texas US Netherlands China Malaysia Taiwan Thailand
Flood hazard index 10 10 10 9 10 10 8 6
Seismic hazard index 9 9 10 9 8 8 3 9
Extra-tropical cyclone hazard index 10 10 10 8 10 10 10 10
Tropical storm and cyclone hazard index 10 10 10 10 10 10 2 10
Tsunami hazard index 10 6 10 10 10 10 8 10
Wildfire hazard index 10 10 10 10 10 10 9 9
Severe storm index 7 10 4 8 5 1 4 3
Legend
Almost Certain 1-2 Likely 3-4 Possible 5-6 Unlikely 7-8 Very Unlikely 9-10

Training and Testing

  • Training

    Our manufacturing and main design and office sites prepare for crisis management using on-the-job training or site-developed online trainings that cover key roles and how to handle site-specific scenarios.

  • Drills

    Our sites conduct drills, at least annually, to test the effectiveness of the continuity plan for a wide range of potential disruptions. This includes interruptions caused by equipment failures, by externally provided products, processes and services, by natural disasters, fires, utility interruptions, or labor shortages and disruptions, including IT issues and cyber-attacks

Notification

Emergency alerts notify us if there are earthquakes, typhoons, floods, explosions and other events. We also have a geographic information system that includes the latitudes and longitudes of the manufacturing locations of our various suppliers of materials. Teams receive emails whenever events happen, and this immediately triggers a due-diligence assessment and an action-planning process. We reach out to factories and vendors in the proximity of the crisis, and if there might be an impact to our supply continuity, we take mitigation actions. Proactive and timely communication with our customers is part of this response.

We Want to Hear from You!

Contact NXP's Business Continuity team at bcm@nxp.com
Contact NXP's Sustainability team at csr@nxp.com