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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L&T Technology Services (LTTS) has announced its financial results for the fiscal year ended March 31, 2026, reporting a 14 percent increase in revenue to INR 109 billion.

The company also confirmed its sixth consecutive quarter of large-deal bookings valued at approximately USD 200 million, bringing its total TCV (Total Contract Value) for the year to over USD 850 million.

As part of a strategic realignment to focus on Engineering Intelligence (EI) and higher-margin core segments, LTTS has divested its SWC (Smart World and Communication) business. This pivot aligns with the company's ‘Lakshya 31’ 5-year plan, which targets a 13–15 percent CAGR through the integration of AI, digital and engineering technologies.

The company demonstrated resilience across key metrics, supported by stabilisation in the mobility sector and strong scaling in sustainability projects.

For Q4 FY2026, the revenue came at INR 28.57 billion, while net income came at INR 3.46 billion, an EBIT margin of 15.2 percent.

During the year, the company’s total patent count reached 1,706, with over 235 patents specifically in AI. The workforce strength stood at 23,830 employees at end of FY2026. L&T Technology Services also achieved ‘Partner-level Supplier’ status with John Deere for the 6^th time, Creative Partnership Award from the Aeronautical Development Establishment (ADE) and Engineering Innovation Award from Newmar Corporation.

Amit Chadha, CEO & Managing Director, L&T Technology Services, said, “We recalibrated our portfolio to focus on profitable growth business, driven by forward-looking technologies. We believe we will continue to grow faster than the industry supported by strong core capabilities and execution discipline. Our approach to Engineering Intelligence, where engineering converges with AI and digital technologies, is delivering higher-value solutions and differentiated outcomes for our clients.”

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American tier 1 supplier BorgWarner has announced a significant 7-year contract extension with a world-leading off-highway manufacturer to supply 8 distinct families of controllers.

The agreement, which runs through December 2032, reinforces BorgWarner’s role as a primary propulsion partner for diverse heavy-duty applications, including construction machinery, marine platforms and stationary power systems.

The contract covers a comprehensive suite of control units designed for both traditional and electrified powertrains:

• Engine & Machine Controllers: Engineered to manage efficient combustion, minimise emissions in large diesel engines and precisely direct hydraulic and mechanical actuators for heavy equipment.
• Power Module & BMS Controllers: Designed for the OEM’s electric machines and battery management systems, supporting the industry's shift toward electrification.

This extension builds on a partnership spanning several decades. By supplying a broad portfolio that ranges from conventional diesel sensor management to advanced battery monitoring, BorgWarner continues to position itself as a versatile Tier 1 supplier capable of supporting the ‘multi-pathway’ technology transition in the off-highway sector.

Dr. Stefan Demmerle, President and General Manager, BorgWarner PowerDrive Systems, said, “BorgWarner has an outstanding relationship with this leading off-highway manufacturer, a customer we have been supplying critical parts to for several decades, and we are thrilled to continue to grow with them as their volumes increase for various market segments and applications. This contract expansion validates our position as a trusted, long-term propulsion partner that is agile enough to support them and provide tailored solutions as they expand into new, emerging markets.”

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Nexteer Automotive has announced that its Electro-Mechanical Brake (EMB) is ready for mass production following extensive development and validation. First introduced as a concept at Auto Shanghai 2025, the EMB completes Nexteer’s Motion-by-Wire portfolio, allowing the company to offer integrated steer-by-wire and brake-by-wire solutions.

The EMB system has undergone a year of rigorous testing, including simulations, bench tests and extreme winter performance validation. According to the company, more than 20 original equipment manufacturers (OEMs) have tested the product, with several projects now moving into technical co-development.

Nexteer is leveraging its historical expertise in steering to create a unified chassis control ecosystem. This approach offers several advantages for modern vehicle architectures:

• Software-Defined Safety: Nexteer’s ‘braking-steering fusion’ software provides cross-domain redundancy, a critical requirement for Level 3 and higher autonomous driving. The software features open interfaces for rapid integration into OEM-specific architectures.
• Hardware Efficiency: By platformising actuator modules – including motors, sensors, and ASIL-D microcontrollers – Nexteer is reusing hardware components across steering and braking systems to reduce costs and development timelines.
• Global Supply Chain: The company is utilising high supplier overlap between its steering and braking divisions to achieve economies of scale through centralised procurement.

Jun Li, Senior Vice-President and APAC Division President, Nexteer Automotive, said, “The integration of Nexteer’s Steer-by-Wire and EMB isn’t just a simple ‘1+1’ — it’s a natural evolution rooted in the fundamentals of mechatronics, and a key enabler for achieving both safety and cost-effectiveness in high-level autonomous driving. Choosing Nexteer means more than just picking up two components — it means getting a complete, proven, production-ready, and cost-effective chassis motion control solution.”

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Technology firm AUMOVIO and adhesive manufacturer tesa have entered a partnership to introduce a new mechanical integration solution for automotive displays.

The collaboration focuses on a robotic bonding process that allows for debonding-on-demand, a feature designed to facilitate repairs and recycling throughout a vehicle's life cycle.

The system utilises a 2 mm wide adhesive tape that is applied robotically, providing an immediate load-bearing bond without curing time. This narrow profile enables the manufacturing of ultra-thin display bezels similar to those found in smartphones.

Unlike traditional permanent adhesives, this bond can be selectively detached with minimal effort, allowing individual display components to be replaced or reworked during production or service without discarding the entire module.

The technology is engineered to compensate for material expansion across automotive temperature ranges while supporting circular economy principles. By enabling the recovery of valuable components at the end of a vehicle's service life, the solution aligns with AUMOVIO’s sustainability strategy. The partners are currently preparing to integrate this process into volume production during the second quarter of 2026.

Pavel Prouza, Head of the User Experience (UX) Business Area at AUMOVIO, said, “The combination of highly precise, automated application and targeted detachability adds an important element to our manufacturing and quality processes. It strengthens the robustness of our production, reduces material waste, and promotes efficient use of valuable components. For the end customer, this could even mean that future repairs may require replacing only the affected individual components in a cost-effective way.”

David Caro, Head of Automotive, tesa, said, “This partnership demonstrates how innovative materials technology is advancing the mobility of tomorrow. Together with AUMOVIO, we offer automated adhesive bonds that not only provide long-term durability but can also be deliberately debonded – enabling efficient production, longer product life cycles, and circular product concepts. This helps our customers translate their sustainability goals into tangible product solutions.”

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