By Arsheeya Bajwa

BENGALURU, Jan 6 (Reuters) - NXP Semiconductors ( NXPI )

could generate between 8% and 10% of its revenue from India over

the next three to five years, a senior executive told Reuters on

Monday, underscoring rising interest in the country's nascent

chip market.

India's growing automotive and industrial sectors are

expected to boost the company's sales in the region, NXP India

head Hitesh Garg said on the sidelines of an industry event in

the tech hub of Bengaluru.

"Next three to five years is the time when India is going to

become very significant for NXP as a market where we also

generate a lot of revenue," he said.

NXP does not currently break out revenue from India, a

fast-growing but small market for most major chip companies.

The India focus comes at a time when sales of automotive

chipmakers such as NXP to key market China have come under

threat from the country's hefty investments in expanding

production of older chips and European tariffs on Chinese

electric vehicles.

China accounted for nearly a third of NXP's 2023 sales of

$13.28 billion, based on customers' shipping locations, while

revenue from the rest of the Asia Pacific market made up almost

30%.

"Some of the missed opportunity from one geography, we can

capture here," Garg said when asked if expanding in markets such

as India could offset uncertainties surrounding sales to China.

U.S. President-elect Donald Trump has vowed to levy a

60% tariff on imports of Chinese-made products, raising

major growth risks

for the world's second-largest economy.

India has been trying to grow its chip industry with

initiatives including a $10 billion incentive package. It

expects its semiconductor market to be worth $63 billion by

2026, but has yet to produce its first chip.

NXP said in September it would invest over $1 billion in

India, doubling its research and development efforts. Other chip

firms including Micron are also investing in the country.