(Bloomberg) -- NXP Semiconductors NV, a major chip supplier to the automotive industry, said it sees strong demand that will drive robust growth for the reminder of the year and into 2022.

The Dutch company reported second-quarter revenue rose 43% from a year earlier to $2.6 billion as global chip shortages continue to drive sales. That compares with the $2.57 billion average estimate from analysts surveyed by Bloomberg.

“We continue to be very positive about the long-term demand trends across all our end markets, and while the supply environment will remain challenging in the near term we have taken actions to increase supply which underpin our confidence to drive very robust growth for the remainder of 2021, as well as into 2022,” Chief Executive Officer Kurt Sievers said Monday in a statement.

Key Insights

  • NXP said third-quarter revenue will be $2.78 billion to $2.93 billion, compared with analysts’ average projection of $2.7 billion.
  • Sievers said in April that supply would likely remain tight for the remainder of 2021 with a constraint in auto chips lasting until 2022.
  • The global chip shortage has led to sales growth across the industry, as electronics makers bought up as many chips as semiconductor companies could produce.
  • The automotive industry has been particularly hard hit. Infineon Technologies AG’s Chief Marketing Officer Helmut Gassel said in May that the shortage would prevent about 2.5 million cars from being built in the first two quarters.
  • Still, chipmakers are ramping up supply with some of the largest pledging to spend billions to increase production and governments weighing incentives to boost local capacity. Taiwan Semiconductor Manufacturing Co. has committed to spending $100 billion over three years to meet surging demand.

Market Reaction

  • NXP’s shares were little changed in extended trading after closing at $208.98 in New York. The stock has gained 31% this year.
  • Infineon reports its quarterly financial results on Tuesday.

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