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Chip shortages hit iPhone 13 production and dent car sales–Is there a message for India here?

Shortage semi-conductors--Concerns rise

Global chip shortage is hitting production of electronic items including smartphones and vehicles. According to reports, Apple Inc is set to cut down on production of its latest offering iPhone 13s due to the shortage of chips and a disruption in supply chain. Semi conductor or chip, as commonly known, is the most critical component required in any modern electronic gadget.

“Apple was expected to produce 90m units of the new iPhone models this year but has told its manufacturers that the number would be lower because chip suppliers including Broadcom and Texas Instruments were struggling to deliver components,” the Guardian quoted news agency Bloomberg as saying.

Supply chain management chips has got severely impacted amid the Covid 19 pandemic.

Also read: PM Modi had fired India’s intent to become a global semiconductor hub during US visit

In India, sale of passenger vehicles in September dropped by over 40 per cent year on year due to shortage of chip.

Meanwhile, Invest India, in its assessment said that India’s semiconductor demand at present, is valued around $ 24 billion but by 2025, the market is expected to touch $ 100 billion.

Demand for semi-conductor has increased significantly with the rise in usage of mobile phones and computers. The advent of 5G technology will push demand further.

New Delhi, which has been relying solely on imports of semi-conductors, has now initiated talks with Taipei for setting up of chip manufacturing facilities in India. South Korea based multinational company Seoul Semiconductor has also announced that it would set up a research & development (R&D) facility in Haryana.