NXP CEO Expects Auto Chip Demand to Recover After Two-Year Slump

NXP 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.

It was an attempt to reassure investors after the Dutch company’s third-quarter forecast was lower than some had ...