NXP CEO Expects Auto Chip Demand to Recover After Two-Year Slump
A NXP Semiconductors integrated circuit microchip in Witham, UK.
Photographer: Chris Ratcliffe/BloombergNXP Semiconductors NV’s Chief Executive Officer Kurt Sievers said that the two-year long inventory glut in automotive chips that’s throttling his business might finally come to an end this year.
While heavy competition and tariff-related supply-chain disruptions are weighing on car demand, “our automotive business is accelerating massively from the second into the third quarter,” Sievers said on a call with analysts Tuesday after the company’s second-quarter results. Once the glut is gone, NXP should benefit from growing demand, he said.