(Bloomberg) — NXP Semiconductors NV, the second-biggest supplier of chips to the automotive industry, expects a severe global shortage of the components to continue into 2023.
However, Kurt Sievers, chief executive officer of the Dutch company, said it was shortsighted to focus in only on vehicle manufacturers causing the strain.
“The shortages in the industry are at least as bad in industrial and other applications as in automotive,” he said on a call Tuesday with reporters and analysts. “I do not think that we get out of this imbalance through this calendar year.”
Sievers’s comments follow the company’s strong forecast for the current quarter, helped by a flood of demand from vehicle makers desperate for parts.
Shares of NXP were down 2% to $201.33 at 9:49 a.m. in New York on Tuesday. The stock has gained about 17.4% over the past 12 months.
Earlier: NXP Gives Upbeat Forecast, Easing Concerns About Chip Slowdown
“Automotive continues to catch better headlines in the news, but it’s not as if it’s any easier in other segments we’re serving,” he said on the call.
The CEO’s comments echo broader industry sentiment that demand may exceed supply for years.
In January, the CEO of Europe’s largest semiconductor equipment maker, ASML Holding NV, said it will take his company “two to three years to get a nice balance.”
“The demand is easily 40% to 50% above our maximum capacity, which I’ve never seen before,” ASML CEO Peter Wennink said in an interview with Bloomberg TV at the time.
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