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.

Comments (0)

ADD COMMENT

Link Copied!

Infineon Technologies has announced a technology agreement with Qualcomm Technologies, Inc. to integrate a microcontroller-based design pattern into Qualcomm's Snapdragon Ride reference platforms for high-performance computing and in-vehicle Artificial Intelligence (AI).

The initiative combines Qualcomm's systems-on-chip (SoC) with Infineon's hardware and software components for safety management, connectivity and memory handling to support centralised architectures in Software-Defined Vehicles (SDVs). The development will be highlighted ahead of the electronica trade fair in Munich.

The subsystem is built around an Infineon AURIX microcontroller and OPTIREG integrated circuits for power management, operating alongside Qualcomm's Snapdragon Ride and Ride Flex platforms to monitor system health, coordinate safety mechanisms and provide real-time control.

The architecture is supported by a dedicated software package designed to pre-integrate firmware and connect with vehicle networks such as Ethernet and CAN. In addition to the microcontroller subsystem, Infineon contributes BRIGHTLANE Automotive Ethernet and USB connectivity devices alongside SEMPER NOR Flash memory qualified for the Snapdragon Ride ecosystem.

Peter Schiefer, President of the Automotive Division, Infineon, said, "With Qualcomm Technologies’ Snapdragon Ride, we enable the automotive industry to build and scale a new generation of car computers that combine tremendous computing and AI capabilities with the reliability required on the road. Our collaboration reflects a fundamental approach to centralised vehicle computing, which combines a powerful SoC with a set of specialised components around it, including a safety microcontroller, power management, connectivity and memory devices. All these components need to work together seamlessly to help enable safe vehicle operation. Infineon provides essential functional building blocks and integration expertise for building the trust foundation for software-defined vehicles that leverage the power of AI."

Comments (0)

ADD COMMENT

Link Copied!

LG Energy Solution has announced the launch of the Battery Innovation Contest 2026 (BIC 2026), inviting universities and research institutions globally to submit research proposals between 29 October and 6 December 2026 via its online open innovation platform, BRIDGE.

Now in its 10^th year, the program aims to identify and fund research concepts with potential for commercialisation across the battery industry. BIC 2026 incorporates two application streams: a thematic call addressing specific development topics identified by LG Energy Solution across materials, cells, battery management systems and artificial intelligence; and an open-topic call permitting researchers to submit original proposals.

To safeguard intellectual property, the contest uses a two-stage evaluation process requiring a brief concept proposal during the initial review before shortlisted applicants submit detailed submissions.

Since 2017, the Battery Innovation Contest has supported approximately 50 research projects. Select projects with verified feasibility have been expanded into longer-term initiatives at the company's Frontier Research Laboratory joint research centres. Previous outcomes include patent filings for physics-based battery management models and research on room-temperature all-solid-state batteries published in academic journals.

Je-Young Kim, CTO, LG Energy Solution, said, "By joining forces, industry and academia can drive innovation across the battery industry. Building on our differentiated technological competitiveness, LG Energy Solution will continue to accelerate its growth in the battery market."

Comments (0)

ADD COMMENT

Link Copied!

Wayve, NVIDIA and Stellantis have announced a joint collaboration alongside the French government at the Assises du Véhicule Autonome to support the deployment of autonomous vehicles in France and across the European Union.

The initiative combines Stellantis’ L4-Ready Platforms with the Wayve AI Driver system, integrating NVIDIA Halos OS on the NVIDIA Hyperion compute and sensor architecture. The collaboration aims to establish an autonomous vehicle value chain in France, spanning silicon development, software integration and vehicle manufacturing.

Local transport partners will engage with trade unions, municipal authorities, and mobility stakeholders to address regulatory alignment, safety requirements, and operational deployment.

Philippe Tabarot, French Minister of Transports, said, "I am pleased to see this collaboration between Wayve, NVIDIA and Stellantis launched at the Autonomous Vehicle Forum in France. France is committed to adapting its regulatory framework to accelerate the development of autonomous vehicles while maintaining strict safety and data sovereignty requirements. By bringing together trade unions, city authorities, and mobility stakeholders, this collaboration embodies the collaborative spirit of the Assises du Véhicule Autonome, as well as the approach required to transition from trials to real-world deployment."

Kaity Fischer, VP Autonomous Mobility & Operations, Wayve, said, "France is leading the way in preparing for autonomous vehicles, and we’re proud to enter this collaboration at such an important moment. By working directly with the French Government and our partners, we can help shape how this technology is deployed safely and responsibly and accelerate its development across the country and entire EU."

Anne Laliron, SVP of Technology Research, Stellantis, said, "This collaboration will help accelerate the delivery of autonomous driving technologies that make mobility safer and more convenient for customers. While its impact is global, France is one of Stellantis’ key centres for engineering and technology development, making it a natural home for advancing the future of AI-powered mobility."

Ali Kani, VP of Automotive, NVIDIA, said, "Bringing safe autonomous mobility to Europe requires deep collaboration across AI, computing and vehicle engineering. NVIDIA Hyperion platform, combined with Wayve’s embodied AI and Stellantis’ automotive expertise, provides a foundation for that ambition. Together with the French Government and local partners, we can help build an ecosystem that brings the benefits of autonomous driving to communities across France and Europe."

Comments (0)

ADD COMMENT

Link Copied!

German luxury carmaker Audi has introduced third-generation digital OLED rear lighting technology on the Q91, marking the production debut of three-dimensionally curved digital OLED panels in the automotive industry.

The lighting system incorporates carrier glass measuring 0.1 millimetres in thickness, allowing a bend radius of up to 200 millimetres to match the vehicle's body contours. The Q91 uses six digital OLED panels housing 512 individual segments, including an outer curved panel with 99 segments.

The curved positioning extends light visibility to wider lateral angles and incorporates warning symbols within the communication light system to alert surrounding traffic to breakdowns, emergency braking or accidents. Up to eight digital light signatures are available across static, active and semi-active display settings.

The vehicle also features digital Matrix LED headlights utilising a 13-millimetre micro-LED module containing 25,600 individual micro-LEDs. The headlight system projects high-resolution lane lighting, orientation paths and dynamic turn signal graphics directly onto the road surface to assist lane centring and indicate directional changes to pedestrians and other vehicles.

Audi first introduced OLED technology on the TT RS in 2016, followed by segmented digital OLEDs on the Q5 in 2020 and second-generation panels on the Q6 e-tron in 2024.

Stefan Berlitz, Head of Lighting Development at AUDI AG, said, "At Audi, light means safety first and foremost – seeing and being seen. Digitalisation opens up entirely new possibilities for further enhancing road safety. The curved digital OLED technology in the Audi Q91 impressively demonstrates this technology’s potential. It combines design freedom, personalization, and communication with the vehicle’s surroundings at a new level. Our vision is to gradually transform light into an intelligent means of communication that makes interaction between the vehicle and its surroundings even safer and more intuitive."

Comments (0)

ADD COMMENT

Link Copied!