Key Points
The global shortage of semiconductors, or chips, which had rattled automobile production and sales in India through fiscals 2021 and 2022 and a large part of fiscal 2023, is easing, with supply-chain glitches being addressed and improved predictive demand forecast enabling better production schedules, said a report by CRISIL...
The production loss on account of the chip shortage, which had halved to approximately 3,00,000 PVs on-year in fiscal 2023, is estimated to have further declined to under 2,00,000 PVs by the end of September 2023, said Says Anuj Sethi, Senior Director, CRISIL Ratings...
For the record, though most PV makers are currently operating at near optimal capacity utilisation due to stronger-than-anticipated demand, new orders to be serviced remains high at approximately 700,000 at the end of September 2023, despite chip availability easing considerably, according to the report...
Earlier, global automobile demand, severely impacted by the Covid-19 pandemic, made a strong recovery in the latter part of fiscal 2022, catching automobile manufacturers off guard as they had not placed substantial orders for chips...
However, semiconductor fabs1 are concentrated in eastern nations, such as Taiwan and South Korea.. Given the criticality of chips in the defence and aerospace industries, the United States and the European Union have offered incentives of approximately $100 billion for localisation of semiconductor fabs..
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