(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 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 0.8% to $203.60 at 11:04 a.m. in New York on Tuesday. The stock has gained about 18% 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.
He praised steps some countries were taking to develop their own chip production capacity. The European Union's Chips Act proposal will lay out ideas for becoming a world leader in semiconductor production.
“This is happening in the U.S. and is happening in Europe and I think genuinely this is a good move,” he told Bloomberg Television. “Given the fact that NXP is a very global company, we definitely support and appreciate that.”
He also said in a separate interview that he sees no letup in demand anytime soon as the damage from the pandemic has yet to be fully undone.
“I see from daily exposure to customers that they have an incredible appetite for more product,” he said. “They have a long way to go to go back to the pre-pandemic levels when it comes to vehicle manufacturing. I'm very confident that demand is not going to drop.”
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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