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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SiMa.ai has announced its first integrated capability resulting from a collaboration with Synopsys. The joint solution provides a blueprint to accelerate architecture exploration and virtual software development for automotive Systems-on-Chip (SoCs). These chips support applications including Advanced Driver Assistance Systems (ADAS) and In-Vehicle Infotainment (IVI).

The partnership aims to deliver architectures required for software-defined vehicles. The blueprint allows customers to begin the design and validation of custom AI SoCs and ‘shift left’ software development before silicon is available. This process is intended to reduce development costs and accelerate vehicle time-to-market.

The blueprint provides pre-integrated SoC virtual prototypes and a tool workflow using solutions from both companies.

For Architectural Exploration:

• SiMa.ai MLA Performance and Power Estimator (MPPE): Enables customers to size machine learning accelerator designs for specific workloads.
• Synopsys Platform Architect: Used to model workloads and analyse performance, power, memory, and interconnect trade-offs before RTL design.

For Verification and Validation:

• Synopsys Virtualiser Development Kit (VDK): Facilitates software development using a virtual SoC prototype, which can accelerate vehicle time-to-market by up to 12 months.
• SiMa.ai Palette SDK: Supports machine learning workflows for edge AI applications.
• Synopsys ZeBu Emulation: Delivers pre-silicon hardware and software validation to ensure architectures meet workload requirements.

Krishna Rangasayee, Founder & CEO at SiMa.ai, said, "We are pleased with how well the two teams have worked together to quickly create a joint solution uniquely focused on unlocking physical AI capabilities for today's software defined vehicles. Our best-in-class ML platform, combined with Synopsys' industry-leading automotive-grade IP and design automation software creates a powerful foundation for innovation across OEMs in autonomous driving and in-vehicle experiences."

Ravi Subramanian, Chief Product Management Officer, Synopsys, said, "Automotive OEMs need to deliver software-defined AI-enabled vehicles faster to market to drive differentiation, which requires early power optimisation and validation of the compute platform to reduce total cost of development and time to SOP. Our collaboration with SiMa.ai delivering an ML-enabled architecture exploration and software development blueprint supported by a comprehensive integrated suite of tools significantly jumpstarts these activities and enables our automotive customers to bring next-generation ADAS and IVI features to market faster."

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Chinese display panel manufacturer Tianma recently exhibited its range of automotive technologies at CES 2026. The company’s solutions include LTPS-LCD, AMOLED and MicroLED technologies designed for cockpits.

The centrepiece of the exhibit was the Smart Cockpit 7.0, an automotive interior and dashboard demonstration. It integrates a 49.6-inch curved ACRUS display with 8K resolution and a slidable AM-OLED display using a gear-rack mechanism.

It also presented InvisiVue, a solution that mimics decorative surfaces like wood or metal when inactive and reveals images through a transmissivity layer when powered on.

The 49.6-inch ACRUS curved display uses Corning ColdForm Technology. It features pixel-level dimming with 210,000 zones, achieving a contrast ratio of 100,000:1. The unit’s R3000 curvature is designed to align with the windshield to reduce blind spots and reflections.

Furthermore, Tianma also presented two HUD technologies – a 43.7-inch Ultra-wide IRIS HUD. It uses a Mini-LED display with peak brightness of 10,000 nits for visibility in sunlight. It features an 85 percent NTSC colour gamut and a curved structure designed to match the windshield’s optical path.

Secondly, an 11.98-inch IRIS HUD, which utilises high-luminance PGU technology, delivering 12,000 nits brightness. The module is less than 15 mm thick for integration in compact vehicles and operates at approximately 6 W to reduce thermal load.

The company also introduced a 34-inch dye liquid crystal dimming glass for rear side privacy windows. This technology uses voltage control of liquid crystal molecules to achieve stepless dimming without physical sunshades.

The system provides a response time of less than 300ms for transitions between privacy and transparent modes. It features a wide viewing angle and a grey-black tone to manage glare within the vehicle interior.

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Audi Revolut F1 Team has reached a technical milestone by completing the first ‘fire-up’ of its 2026 Formula 1 car. The event took place at the team's facility in Hinwil on 19 December 2025, where the Audi Power Unit was operated for the first time while installed within the chassis.

The procedure serves as a verification of the integration between the powertrain, developed in Neuburg, Germany, and the chassis, designed in Hinwil, Switzerland. The project also involves the Technical Centre in Bicester, UK. This phase confirms that the core components of the vehicle function together before moving into the next stages of dynamic testing.

Gernot Dollner, CEO of Audi AG, said, “For Audi, entering Formula 1 is a key part of our brand’s ongoing renewal. This milestone is a clear demonstration of our ‘Vorsprung durch Technik’ ambition. It is the result of seamless teamwork and a relentless pursuit of excellence that will serve as a guiding example for the entire Audi organisation. This project is a catalyst for change, fostering pride, identity, and enthusiasm. With the fire-up, the hard work of the teams in Hinwil, Neuburg and Bicester now truly comes to life, marking the beginning of an exciting new chapter in Audi’s motorsport history.”

Mattia Binotto, Head of the Audi F1 Project, added, “A fire-up is always a special moment, but this one marks a new beginning. It is the tangible result of our collective ambition and the dedicated work of our teams in Neuburg and Hinwil. Seeing everything come together for the first time gives the entire project incredible energy. We have built a solid foundation for what will be a long journey, defined by our relentless drive to improve.”

Jonathan Wheatley, Team Principal, commented, “This successful fire-up is a critical milestone that validates the quality of the work and collaboration across all departments. It energises the entire team and provides a clear focus as we prepare for the next phases of development, including the moment we first bring the car to track. This achievement brings our first race in Melbourne into sharp focus, and we will build on this foundation as one united team.”

The team is scheduled to hold a launch event in Berlin on 20 January 2026, where the race livery and identity will be revealed. This will be followed by collective testing in Barcelona at the end of January. A content hub will also be launched to provide media updates throughout the inaugural season.

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Bengaluru-based electric vehicle maker Ather Energy has announced the rollout of the 'Infinite Cruise' feature on the Ather 450X model. The software feature is being enabled via an over-the-air (OTA) update and will be provided as standard.

First introduced on the Ather Apex 450 in August 2025, the system is designed for urban riding conditions in India. Unlike conventional cruise control that disengages upon braking or acceleration, Infinite Cruise is said to remain active and adapts to rider inputs. The system recalibrates to new speeds without requiring manual reactivation, aimed at reducing throttle intervention in traffic. The feature operates within a speed range of 10 kmph to 90 kmph, covering city speeds typically excluded by traditional systems.

The update incorporates three specific control modes:

• CityCruise: Adjusts to speed changes in urban traffic.
• Hill Control: Maintains speed on inclines and descents using a regenerative braking algorithm.
• Crawl Control: Stabilises low-speed movement on uneven surfaces, supported by traction control.

Ather will extend this feature to over 44,000 existing customers who purchased the 450X from 1 January 2025. The company stated that this backward compatibility is a result of hardware choices made during the development of the 2025 series.

The Ather 450X is priced from INR 147,998 (ex-showroom) in Bengaluru. The company continues to use software updates to modify the capabilities of its vehicle fleet over time.

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