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.
Bosch And Qualcomm Expand Strategic Partnership For ADAS Solutions
- By MT Bureau
- April 12, 2026
Bosch and Qualcomm Technologies, Inc. have announced an expansion of their strategic collaboration to include Advanced Driver Assistance Systems (ADAS). This move builds upon their established partnership in cockpit solutions and aims to address the automotive industry's requirement for scalable technology in automated and connected vehicles.
Bosch stated it has now delivered more than 10 million vehicle computers globally using Qualcomm’s Snapdragon Cockpit Platforms.
The extended agreement includes new production programmes for ADAS that utilise Bosch’s vehicle computer architecture powered by the Snapdragon Ride platform. A central component of this collaboration is the development of platforms that combine cockpit and ADAS functions on a single system-on-chip (SoC).
This integration is designed to align with the strategic shift towards software-defined vehicles, allowing automakers to reduce architectural complexity, power consumption, and manufacturing costs.
The Bosch ADAS integration platform is designed as a modular computer capable of fusing data from multiple sensors to create a 360-degree environment model. This system supports a range of functions from entry-level assistance, such as lane keeping and distance regulation, to higher-level automated driving. The joint engineering efforts have already secured several design wins in the East Asian market, with the first vehicles featuring these consolidated platforms expected to enter the market in 2028.
By migrating from numerous individual control units to a small number of high-performance computers, the partnership provides a path toward centralised vehicle architectures.
These solutions are engineered to meet safety standards up to ASIL-D while enabling consumer features such as hands-free driving and intelligent automated parking across various vehicle segments.
Christoph Hartung, Member of the Bosch Mobility business sector board, said, “By combining leading-edge compute technology with our system integration expertise – hardware, software, and safety – we enable automakers to meet the rising demand for personalised, safe and comfortable driving experiences. The growing success of our collaboration with Qualcomm Technologies underlines a central value Bosch brings to the industry: we provide the robust, high-performance computing platforms that form the backbone of today’s software-defined vehicle.”
Nakul Duggal, EVP and Group GM, Automotive, Industrial and Embedded IoT, and Robotics, Qualcomm Technologies, said, “Our collaboration with Bosch spans the full spectrum of vehicle compute – from high‑performance cockpit systems to scalable automated driving solutions and emerging centralised vehicle architectures – all powered by Snapdragon Digital Chassis automotive platforms. ADAS is where performance and safety must scale in the real world. By expanding our work with Bosch into production-ready ADAS platforms, we’re helping automakers bring advanced driver assistance across vehicle lines more efficiently, with a clear path to centralised compute.”
Toyota Kirloskar Motor And Wipro 3D To Establish Additive Manufacturing Centre
- By MT Bureau
- April 10, 2026
Toyota Kirloskar Motor (TKM) has signed a Memorandum of Understanding (MoU) with Wipro 3D to create a Centre of Excellence (CoE) for additive manufacturing. The facility will be located at the Toyota Technical Training Institute (TTTI) in Bidadi, Bengaluru. The partnership is intended to facilitate skill development and the integration of 3D printing technologies into production environments.
The centre will provide students with exposure to industrial applications of additive manufacturing, including rapid prototyping and the development of production aids. Wipro 3D will provide technical expertise and training modules covering internships, apprenticeships and workshops. The curriculum will also incorporate digital manufacturing and resource optimisation as part of an emphasis on Industry 4.0 technologies.
By leveraging these manufacturing capabilities, the initiative aims to reduce lead times and improve assembly line efficiency. The TTTI, which focuses on vocational education in trades such as mechatronics and welding, doubled its intake to 2,400 students in 2023. This collaboration aligns with the institution's objective to build technical talent for the automotive sector.
G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, "Our Human Resource Development philosophy at TKM follows core principles of Toyota such as, Continue the Quest for Improvement, Show Respect for People, under which we thrive hard to develop individuals in the Latest Technology of the New Age Era of automotive field. We are also committed to nurturing skilled talent and strengthening India’s manufacturing ecosystem. This collaboration will play an imperative role in nurturing future-ready talent, while contributing meaningfully to the Government’s Skill India Mission.”
Yathiraj Kasal, Business Head and General Manager, Wipro 3D, added, “This association reflects our commitment to strengthening India’s manufacturing ecosystem through capability building and innovation, while creating industry-relevant learning experiences.”
TomTom Intros Unified Speed Restrictions For Automated Driving
- By MT Bureau
- April 10, 2026
TomTom has introduced Unified Speed Restrictions, a new service providing updated speed limit data for global regulatory compliance and Advanced Driver Assistance Systems (ADAS). The service is designed to help vehicle manufacturers exceed the minimum requirements of Intelligent Speed Assistance (ISA) regulations.
The service integrates multiple static and live data sources into a single output. By combining various inputs, the system provides continuous updates to vehicle software to ensure speed limit identification remains accurate across different driving environments.
Data sources utilised include:
- Unsigned speed limits: Based on regional road classifications.
- Roadside sign recognition: Camera-based detection of physical signs.
- Probe data: Aggregated information from connected vehicles.
- Variable speed limits: Real-time data from electronic overhead gantries.
Beyond safety compliance, the service supports automated driving functions by providing data for predictive path planning and smoother vehicle manoeuvres.
The solution is available as an API or pre-integrated within the TomTom ADAS SDK. The SDK is modular, allowing manufacturers and Tier 1 suppliers to incorporate the data into existing software stacks without vendor lock-in. This architecture is intended to reduce development costs and accelerate the deployment of predictive assistance features.
Manuela Locarno Ajayi, SVP of Product Engineering, TomTom, said, “Accurate and trusted speed information is foundational to road safety, regulatory compliance and automated driving at scale. With Unified Speed Restrictions, we are equipping automakers with a globally consistent, future‑ready foundation that reduces complexity, enabling higher levels of automation.”
DEP Launches AI-Powered Engineering Platform In India
- By MT Bureau
- April 09, 2026
Detroit Engineered Products (DEP) has introduced DEP AIWorks, an engineering platform designed to integrate machine learning with physics-based simulation. The launch follows the conclusion of a five-city industry conclave held across Bengaluru, Delhi NCR, Hyderabad, Pune and Chennai.
DEP AIWorks is built as a physics-agnostic and tool-agnostic environment, allowing it to function across various datasets and engineering domains. The platform combines neural networks and physics-informed models with computer-aided engineering (CAE) solvers to provide predictive and generative capabilities within the product development lifecycle.
Core features of the platform include modular architecture, operational speed and ecosystem compatibility.
The platform is intended for use in the automotive, aerospace, energy, manufacturing and telecommunications sectors. It supports various stages of development, from early design exploration to manufacturing validation. By utilising data-driven learning alongside physics-based validation, the system aims to improve engineering productivity and accelerate decision-making cycles.
Radha Krishnan, President & Founder, DEP, said, “DEP AIWorks reflects the next step in how engineering organisations will adopt AI, not as a standalone tool, but as an integrated part of the product development lifecycle. By combining decades of simulation expertise with advances in AI, we are enabling teams to move faster while maintaining engineering rigor and reliability.”
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