deal with the chip shortage, which has left them with idle plants and furlough workers. As a result, businesses are now facing bottlenecks in their capacity and expect delays in the launch of new products.
A few days ago, the Consumer Electronics and Appliances Manufacturers Association (CEAMA) revealed that the shortage is expected to last through the next year and may even extend to 2023, although the organisation noted that manufacturers in India have taken the necessary steps to tackle this challenge, including advance and joint planning with suppliers, design optimisation, value innovation, dual sources and localisation.
“The industry might run short of controllers owing to shortages of semiconductors and other electronic components. Keeping in mind the surge in demand during festive, we have taken appropriate measures to mitigate the near-term risks,” CEAMA President Kamal Nandi told PTI.
Semiconductor chips are used for the manufacturing of some of the crucial components for the consumer electronics sector such as microcontrollers, optocouplers, switches and connectors. They are also are extremely important for the production of new vehicles, with each vehicle having hundreds of semiconductors, depending on their safety and infotainment systems.
According to Nandi, chip manufacturers have also launched several efforts to expand their capacity, although they would not have any material impact anytime soon. “It is going to take two or three years before we start to see the positive impacts of these steps,” he noted.
