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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Dubai Future Foundation has announced DP World as the first strategic partner of SHIFFT, a self-driving logistics joint venture established in collaboration with autonomous vehicle technology company Oxa under the Dubai Research, Development and Innovation Programme.

The partnership focuses on developing and deploying autonomous logistics solutions across ports, terminals and industrial zones, beginning at Jebel Ali Port. The scope includes vehicle integration, autonomous driving functions, safety frameworks, fleet management, routing, digital twins, situational intelligence and operational performance optimisation.

At present, DP World operates more than 900 vehicles at Jebel Ali Port for inter-terminal container movement, alongside thousands of vehicles across its global network of over 60 ports and terminals.

Khalifa Al Qama, Chief of Research, Development and Innovation, Dubai Future Foundation, said, "The selection of DP World as the first strategic partner of SHIFFT marks an important step in developing and implementing autonomous logistics solutions from Dubai. This collaboration brings together world-leading operational expertise and advanced technologies to develop practical solutions that can be deployed and scaled globally."

Ibrahim Al Najjar, Senior Vice-President of Information Technology, DP World GCC, said, "For our customers and partners, autonomous technology translates into more predictable, resilient supply chains that keep cargo moving reliably and at speed. It also creates opportunities for our people to build future-ready skills, while strengthening Dubai’s competitiveness as a destination for trade and investment. By co-developing these technologies here, around real operational needs, we are setting new benchmarks that will benefit the wider industry."

Paul Newman, Founder and CEO, Oxa, said, "This collaboration aims to transform industrial vehicles into an intelligent, autonomous digital workforce capable of operating efficiently in complex, mixed-use environments. By working with DP World, SHIFFT is helping to elevate operational fleet performance and strengthen the long-term resilience of supply chains."

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Acconeer has secured an order valued at USD 520,000 for its A121 pulsed coherent radar sensor for mass production applications within the automotive sector. The purchase order was placed by a Japanese distributor, with product deliveries scheduled for the first half of 2027.

The A121 sensor operates on 60GHz pulsed coherent radar technology integrated within a 28 mm² surface area footprint, providing distance measurement, motion detection and object presence sensing functions.

The supply contract follows growth across Acconeer's automotive product portfolio, which also includes the A212 sensor model. The company announced that the information was submitted for publication pursuant to requirements under the EU Market Abuse Regulation.

"We are seeing strong growth within the automotive industry, driven both by our new A212 sensor – for which deliveries quadrupled in the third quarter compared to the previous quarter – and by our established A121 sensor, with volumes increasing as new models and customers are launched," said Ted Hansson, CEO, Acconeer.

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Intangles has launched an AIS-140-certified product portfolio in India across four distinct configurations: InCert, InSight, InGenious and InVision+. The product lineup supports commercial vehicle segments ranging from three-wheelers and cabs to light, medium and heavy commercial vehicles and buses.

The portfolio integrates India's AIS-140 vehicle tracking and emergency alert requirements with predictive fleet intelligence. InCert provides certified tracking, trip management, geofencing, and driver alerts. InSight adds driver behaviour reporting, fuel consumption insights and fault codes with repair guidance. InGenious introduces predictive vehicle health monitoring, fuel management, and automated operations tools. InVision+ combines the certified hardware with AI-powered video telematics using dual cameras and in-cabin voice alerts.

All four versions run on Intangles' InRoute fleet intelligence platform. The devices are available through field sales channels and the company's direct-to-consumer platform, InCentral, which handles compatibility checks, purchases, and VLTD certificate generation.

Anup Patil, CEO, Intangles, said, "The size of a fleet should not determine whether an operator can access predictive intelligence. A vehicle off the road can significantly affect a business, whether it owns five vehicles or five hundred. With a certified device already installed and connected whenever the vehicle runs, operators should be able to choose the value it delivers to their business. Intangles’ new range brings this promise to life through #ChoiceOkPlease, giving operators the flexibility and freedom to choose a solution that meets compliance requirements and addresses their everyday operational challenges."

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Affordable Robotic & Automation (ARAPL) has announced that its subsidiary ARAPL RaaS, operating under the Humro brand, has received Conditional Approval from the US Department of War for its specified autonomous industrial vehicles under the US Federal Communications Commission (FCC) framework.

The approval, issued by the FCC following national security assessments, covers Humro’s Maia2000 autonomous pallet trucks and Atlas AC2000 autonomous forklifts. The decision grants the specified devices exemption from FCC Covered List restrictions, which were introduced in July 2026 for foreign-produced robotic devices.

Humro is among 13 global robotics operators, and the only Indian entity, to receive conditional authorization under the updated guidelines. The approval enables the company to enter the US material-handling market, subject to compliance with onshoring plans, local manufacturing commitments over the next two years, and equipment authorisation requirements.

Robinson Philipose, Co-Founder and Chief Executive Officer, Humro, said, "This is a significant milestone for Humro and an important validation of our technology and our commitment to building globally competitive robotics solutions. Being among the first few robotics companies worldwide to receive Conditional Approval under the revised US regulatory framework is a matter of great pride for us."

"Following the regulatory changes, our team worked relentlessly to replace certain key components that did not meet the revised guidelines. This also required us to make corresponding changes to our technology to ensure compliance. We completed the modifications, submitted our application and secured FCC approval within a remarkably short period. This demonstrates the agility and technical capabilities of our team. The approval strengthens our position as we look to expand our international footprint and take our autonomous material-handling solutions to customers in the US. We see considerable potential for robotics to transform warehouse, manufacturing and logistics operations. As part of the Conditional Approval, we are also committed to commencing manufacturing in the US in phases over the next two years. We are actively looking to partner with like-minded local players to establish our manufacturing operations in the country," Philipose.

Melind Padole, Founder and Director, ARAPL Group, said, "These are exciting times, with our teams in the US and India expanding rapidly. Securing FCC approval within such a short period demonstrates the strength of our team and the capabilities of our products. As we prepare to commence manufacturing in the US in line with FCC requirements, we have also begun working towards meeting the requirements of the Buy American Act (BAA) and the Trade Agreements Act (TAA). In parallel, we are developing a new technology platform based on Vision-Language Action models. Our next-generation robots will be more human-like in their ability to perceive, understand and interact with their surroundings, and will incorporate reinforcement learning capabilities. This will enable them to learn from experience, adapt to changing environments and perform increasingly complex tasks."

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