The global shortage of semiconductors or chips in the aftermath of the Covid-19 led pandemic has eased as per a report by Crisil. A development that led most automakers to cut down production significantly and postpone the launch of new models or to put them to production through 2020, 2021, 2022 and a good part of 2023 has finally eased to iron out any supply chain disruptions that may be there. 

Expected to address and improve predictive demand forecast, the better availability of chips should enable better production schedules. By FY2025-26, Crisil analysts are of the opinion that demand-supply dynamics should be more balance with additional manufacturing capacities getting commissioned. 

With the chips possessing distinct electrical properties that make them the cornerstone of all electronic equipment and devices, it is the auto industry that has come to use them for a variety of functions as automobiles turn increasingly software driven. While the computer and communication equipment (C&C) segment consumes roughly 63 percent of the chips produced, the auto industry consumes roughly 13 percent of them. The other industrial segments consume about 12 percent. 

With new developments such as autonomous and EVs, the use of semiconductors in automobiles is only slated to rise. With passenger vehicles the recipient of most technological innovations ahead of other segments such as two-wheelers, three-wheelers and commercial vehicles, it should not come as a surprise that they consume about 1,500 chips on average – the highest among all automobile types. 

As more advanced electronic features are incorporated, the use for chips increases. The electric passenger vehicles, for example, use almost twice as many chips as internal combustion engine (ICE) passenger vehicles do. The improving supply and slowing demand for computers and mobile phones is therefore looked upon as a blessing in disguise for automobiles and their manufacturers. 

Anuj Sethi, Senior Director, CRISIL Ratings, mentioned, “The chip shortage faced by Indian passenger vehicle makers is easing, with current availability at 85-90 percent of total requirement. The production loss on account of the chip shortage, which had halved to about 300,000 PVs on-year in fiscal 2023, is estimated to have further declined to under 200,000 PVs by the end of September 2023.”

Most passenger vehicle manufacturers are currently operating at near optimal capacity utilisation due to stronger-than-anticipated demand. New orders to be serviced remains high at about 700,000 units at the end of September 2023. 

The easing of chip shortage should help automakers honour new orders with better prediction and faster production. Global automobile demand, severely impacted by the Covid-19 pandemic, made a strong recovery in the latter part of FY2021-22. It caught automobile manufacturers off guard as they had not placed substantial orders for chips. 

The surge in demand for personal computers, laptops and mobile phones, driven by work from home, virtual learning and remote healthcare services, led to a significant chip procurement challenge for the automakers. 

Geographically, the chip ecosystem is skewed, with western nations dominating chip architecture, design, manufacturing equipment, specialised materials and chemicals. Semiconductor fabs1 on the other hand are concentrated in eastern nations, such as Taiwan and South Korea.

Given the criticality of chips in the defense and aerospace industries, the United States and the European Union have offered incentives of about USD 100 billion for localisation of semiconductor fabs. As a result, many global players are slated to spend about USD 360 billion towards setting up new facilities, which would be operational by 2025 and 2026. 

In the Indian context, demand for chips will continue to increase over the medium term, driven by the gradual rise in EV adoption and growing demand for advanced feature-laden ICE vehicles.

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Bengaluru-based ride-hailing company Ola Consumer has launched its non-AC ride category across India, becoming the only player in the country to offer this option at scale.

The company stated that the goal is to offer customers maximum choice across various price points to meet their travel needs. The new category will also enable cab drivers to have lower fuel consumption and improve their earnings.  

Ola Consumer spokesperson said: “With the non-AC category, we’re pushing the boundaries of how affordable and accessible urban mobility can be in India. Millions of people rely on daily, value-driven transport, and this offering is built entirely around their needs. The early response has been incredible and shows how strongly India wants more transparent, flexible, and fairly priced mobility. This move marks a step ahead in our mission to rethink mobility in India, and make it truly inclusive for every consumer.”

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Synopsys, in association with 3D Engineering (an Ansys Elite Channel Partner), has inaugurated a new Design Center for Engineering Simulation at the MCCIA Electronic Cluster Foundation (MECF) in Pune.

The facility aims to accelerate access to advanced simulation technologies for MSMEs and be a catalyst for industrial R&D in Tier 2 and Tier 3 cities, industry-academia collaboration and student training.

The Design Center will enhance simulation-led innovation and adoption in electronic product design engineering for MSMEs in automotive, aerospace and defence, electronics and healthcare.

The facility will provide hands-on access to engineering tools in structural analysis, thermal modelling, electromagnetics and digital twin technologies. It is equipped with licensed Ansys (now part of Synopsys) simulation platforms and a high-performance computing (HPC) infrastructure.

The MECF facility is one of the Common Facility Centers (CFCs) approved by the Ministry of Electronics and Information Technology (MeitY), valued at INR 710 million. MECF is promoted by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).

This initiative aligns with India's goals under 'Make in India' and 'Skill India' by enabling simulation-led R&D, accelerating time-to-market for local manufacturing innovations and building a talent pipeline trained in engineering challenges.

It will serve as a dual-purpose hub for skill development and industry consultancy, offering design, simulation services and hands-on training. It will also bridge the cost and resource gap for smaller enterprises by offering discounted access to design tools and expert support.

Mike Yeager, Area Vice-President, Synopsys, said, “Simulation is a foundation of modern engineering, and we believe in making these powerful tools accessible everywhere in India. Our collaboration with 3D Engineering and MECF, supported by the Ministry of Electronics and Information Technology (MeitY), will empower students, startups, and SMEs to leapfrog into next-generation design and innovation.”

Murali Pullela, Area Sales Director, Synopsys, said, “Our collaboration with MECF reflects the company's commitment to empower innovation from silicon-to-systems. By equipping the design center with advanced engineering tools, India’s electronics ecosystem can be strengthened, accelerating product development aligned with global standards.”

Shrikrishna Gadgil, CEO, MECF, said, “MECF helps the industry in their product development cycle from design to certification, which will support the electronics ecosystem in the region. Our vision is to make the region vibrant with innovation, fostering new products and technologies, and establishing it as a hub for futuristic products and a center of technology excellence. We’re committed to bringing world-class technology and infrastructure closer to grassroots engineering talent. For us, this Design Center by 3D Engineering with Synopsys, as the principal partner is not just an investment in infrastructure, but also an investment in people, capability-building, and future innovation.”

Ajay Deshkar, Managing Partner, 3D Engineering, said, “As a long-standing Ansys Channel Partner, we at 3D Engineering are proud to enable this ecosystem where cutting-edge simulation technology meets local ingenuity. This Design Center is a model for how industry partnerships can meaningfully drive regional innovation and contribute to India’s technological self-reliance.”

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Nvidia and Synopsys, Inc. have announced an expanded, strategic partnership to revolutionise design and engineering across industries. The collaboration aims to integrate Nvidia's AI and accelerated computing with Synopsys' engineering solutions to help research and development teams design, simulate and verify intelligent products with greater precision and speed.

Furthermore, Nvidia invested USD 2 billion in Synopsys common stock at a purchase price of USD 414.79 per share as part of the multi-year collaboration. The partnership is targeted at R&D teams across the semiconductor, aerospace, automotive and industrial sectors that face challenges including workflow complexity, development costs and time-to-market pressure.

Jensen Huang, Founder and CEO, Nvidia, said, “CUDA GPU-accelerated computing is revolutionising design – enabling simulation at unprecedented speed and scale, from atoms to transistors, from chips to complete systems, creating fully functional digital twins inside the computer. Our partnership with Synopsys harnesses the power of Nvidia accelerated computing and AI to reimagine engineering and design – empowering engineers to invent the extraordinary products that will shape our future.”

Sassine Ghazi, President and CEO, Synopsys, said, “The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute. No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and Nvidia. Together we will re-engineer engineering and empower innovators everywhere to more efficiently realise their innovations.”

The multi-year partnership builds on existing collaborations and includes the following initiatives:

• Broad Application Acceleration: Synopsys will accelerate and optimise its portfolio of compute-intensive applications, spanning chip design, physical verification, molecular simulations, electromagnetic analysis and optical simulation, using Nvidia CUDA-X libraries and AI-Physics technologies.
• Agentic AI Engineering: The companies are integrating Synopsys AgentEngineer technology with the Nvidia Agentic AI technology stack – including Nvidia NIM microservices, Nvidia NeMo Agent Toolkit software, and Nvidia Nemotron models – to enable autonomous design capabilities for EDA and simulation and analysis workflows.
• Digital Twins: Collaboration will enable virtual design, testing and validation through the use of accurate digital twins for industries such as semiconductor, robotics, aerospace, and automotive. These solutions will utilise Nvidia Omniverse, Nvidia Cosmos and other technologies.
• Cloud-Ready Solutions: Synopsys and Nvidia plan to enable cloud access for GPU-accelerated engineering solutions.
• Go-to-Market Initiatives: The companies have agreed to develop joint go-to-market initiatives to reach engineering teams across multiple industries with both on-premise and cloud-ready solutions. This effort will utilise Synopsys' global network of sellers and channel partners.

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TrinamiX and Aumovio will demonstrate a non-invasive blood alcohol measurement solution for private and commercial vehicles at CES 2026 in Las Vegas. The technology is designed to enhance road safety and address regulatory demand for driver-monitoring systems. The system enables real-time measurement of blood alcohol concentration by touching a sensor with a fingertip.

The technology uses invisible near-infrared light that interacts with ethanol molecules present in the tissue under the skin. By analysing the reflection of this light, the system’s algorithms based on AI can derive the alcohol content in a person’s blood. The functionality and performance of this technology have been scientifically validated through a clinical study.

TrinamiX provides expertise in spectroscopy and optical sensing, while Aumovio offers know-how in vehicle system design and integration. The system can be configured to meet different market requirements and threshold levels.

The miniaturised NIR spectroscopy sensor offers convenience and features:

• Non-Invasive Convenience: Touch-based, eliminating the need for users to blow into a device.
• Real-Time Readings: Results are delivered in seconds to ensure operational efficiency.
• Seamless Integration in Vehicles: Compact and adaptable for various vehicle positions to encourage user acceptance.
• Automotive System Design and Integration: Provided through partnership with Aumovio.

Wilfried Hermes, Director Consumer Electronics & Automotive EU & NA, TrinamiX, said, “Our NIR spectroscopy technology offers a reliable, user-friendly way to measure blood alcohol levels, redefining driver safety standards. By providing OEMs with a vital tool to meet emerging safety regulations, we’re empowering a safer and more convenient future for all road users.”

Ulrich Luders, Director Strategy & Portfolio, User Experience business unit at Aumovio, said, "The integration of TrinamiX's NIR spectroscopy, for example into vehicle displays, enables innovative safety and health features directly in the car. With this we create new standards for comfort and safety and demonstrate how such technologies can be seamlessly integrated into existing systems."

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