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.
Valeo Expands EV Ecosystem Footprint With Advanced Ineez Smart Charging Solutions
- By MT Bureau
- June 03, 2026
French tier 1 supplier Valeo has expanded its presence in the electric vehicle ecosystem with the introduction of its advanced smart charging product range. The new lineup is being showcased at the Drive to Zero event at Paris Expo Porte de Versailles.
For the first time, the company is demonstrating its new Ineez AC charging station, which features native integration of bidirectional Vehicle-to-Grid (V2G) technology and the ISO 15118-20 communication protocol. The implementation transforms the traditional vehicle charging point into an active hub capable of optimising local energy flows and reducing user costs by allowing real-time interaction between electric vehicles and the power grid.
The core software and hardware architecture powering Valeo's V2G charging equipment utilises a technology platform originally engineered by IoTecha, which is now owned by Valeo.
This system combines updated communication networks with a cloud-based IoT.ON management platform to secure baseline interoperability between the EV, the charger and the local utility provider.
It utilises ISO 15118-20 protocol, which serves as a secure, universal digital interface between the vehicle and the hardware to guarantee ultra-secure data transfers and support bidirectional energy flows. Embedded software stacks allow for localised implementation of varying international grid codes, optimising hardware functionality according to specific geographic requirements.
The autocharge feature streamlines the consumer charging process by incorporating automatic, cardless user authentication upon plug-in. The bidirectional power flow enables electric vehicles to feed stored energy back into power grids or localised buildings during peak energy demand periods, serving as a functional tool for asset monetisation.
At the event, Valeo is exhibiting its full Ineez commercial portfolio, structured to target residential, commercial, industrial and fleet applications including – Smart Unidirectional (V1G) AC Stations, Advanced Bidirectional (V2G) AC Stations, Energy Management Systems and Ancillary Hardware.
Isabelle D’Ambrosio, Vice-President of Smart Mobility, Valeo, said, “At Valeo, we are combining our industrial excellence and software protocols, to make advanced energy flexibility both accessible and future-proof for our customers, expanding our reach beyond the traditional automotive technology. We are proud to present our latest Ineez AC charging station that offers Vehicle-to-grid technology as well as the latest communication protocol that secures a safe interface between the vehicle and the charging station.”
Oleg Logvinov, Founder, IoTecha, added, “As EV infrastructure becomes woven into the fabric of daily life – from the driveway to the highway – the potential for asset monetisation scales exponentially. IoTecha’s platform, now a part of Valeo’s global ecosystem, bridges the gap between simple charging and smart monetisation. We aren’t just charging vehicles; we are providing a one-stop shop to turn every EV into a high-performance revenue engine.”
Synopsys To Host SNUG India 2026 Conference In Bengaluru
- By MT Bureau
- June 03, 2026
Synopsys, Inc., a prominent provider of silicon-to-systems design solutions, will host its annual flagship Synopsys User Group (SNUG) India 2026 conference at the Sheraton Grand Bengaluru Whitefield Hotel on 18 June 2026.
The one-day event serves as a collaborative platform for semiconductor design engineers, technology executives and ecosystem partners across India's electronics and systems engineering sectors to discuss developments in the era of pervasive artificial intelligence.
The conference will open with a keynote presentation delivered by Ravi Subramanian, Chief Product Management Officer at Synopsys, titled ‘Re-Engineering the Future of Silicon’. The address will examine the structural transformations occurring within engineering design and development workflows, driven by specific technical shifts:
- AI and Agentic Workflows: Exploring how machine learning and autonomous agent frameworks are optimising traditional silicon layout and verification pipelines.
- Silicon-to-Systems Innovation: Evaluating the accelerating convergence of standard silicon design, multiphysics analysis and intelligent system engineering to manage high design complexity.
- Accelerated Innovation Cycles: Addressing the challenges organisational engineering teams face during truncated development timelines for complex semiconductor products.
As software-defined architectures and AI transform product development paradigms, SNUG India 2026 will run multi-track sessions detailing next-generation engineering workflows. The technical program will incorporate peer-reviewed customer presentations, expert panels and technical deep-dives covering – AI-enabled semiconductor engineering & automation tools; 3DIC and advanced packaging; managing signal integrity & layout density in multi-dye chip architectures; multiphysics chip design & hardware-assisted verification systems and design methodologies for software-defined systems.
Sudeep Kallappa Shivalli, Regional Senior Director, Go To Market at Synopsys, said, “SNUG India 2026 reflects the spirit of collaboration and innovation that has defined the Synopsys Users Group community for over three decades. As engineering teams navigate unprecedented complexity driven by AI, intelligent systems and software-defined products, platforms like this becomes increasingly important for bringing together customers, partners and technology experts to exchange insights, share experiences and collectively shape the future of innovation.”
File photo: Synopsys 2025
Varroc Partners TOLYY To Expand Digital Cockpit Manufacturing Capabilities
- By MT Bureau
- June 03, 2026
Pune-based automotive component manufacturer Varroc Engineering has announced inked a Strategic Cooperation Agreement with Suzhou Tolyy Optronics Co (TOLYY).
The strategic partnership establishes a joint framework for select programs to localise and supply next-generation digital cockpit solutions for global passenger and commercial vehicle platforms.
The alliance establishes a co-development and manufacturing platform aimed at securing joint market participation across India, Europe and North America.
As per the understanding, TOLYY will support Varroc through a multi-tiered supply and localisation engineering model. This flexible framework includes two primary supply paths: the delivery of fully integrated display modules – encompassing display panels, backlight units, touch interfaces, protective enclosures and electronic control units (ECUs) – as well as screen-only component supply intended for localised final assembly within India.
Varroc will utilise these components to manage the overall system integration, technical validation and manufacturing of advanced automotive display solutions tailored to diverse vehicle applications.
The structural cooperation model is organised around three strategic operational pillars – program-specific module supply, localised Indian assembly and industrialisation rights.
This decentralised production approach is projected to accelerate product time-to-market, strengthen automotive component supply chain resilience and meet rising OEM demand for localised, high-technology electronics.
Dhruv Jain, Whole Time Director and CEO of Varroc Business II, said, “At Varroc, our endeavour is to deliver brilliance at scale by seamlessly integrating global innovation with localised execution. This partnership with TOLYY strengthens our ability to offer cutting-edge digital cockpit capabilities while enhancing supply chain resilience and supporting OEMs to provide safe, smart and sustainable mobility solutions.”
Strong Shi, President and CEO, TOLYY, added, “TOLYY is excited to embark on this strategic partnership with Varroc, a recognised leader in global automotive manufacturing. This alliance is a testament to the industry’s recognition of our cutting-edge display engineering and integrated module capabilities. By combining our advanced technologies with Varroc’s scale and deep customer access, we are not just supplying components but co-creating the next generation of digital cockpit experiences for key markets worldwide. This partnership accelerates our shared vision of setting new benchmarks for performance, quality and supply chain efficiency in automotive displays.”
Uber Invests In ONDC To Deepen Integration With India's Digital Public Infrastructure
- By MT Bureau
- June 02, 2026
Uber, one of the leading rides-hailing platforms, has announced a strategic investment in the Open Network for Digital Commerce (ONDC). The transaction marks one of the earliest equity investments by a global technology firm into the network.
The capital infusion builds upon Uber’s existing operational integrations with ONDC and to expand user access to multimodal transportation architectures and optimise decentralised logistics frameworks for independent earners and commercial enterprises across the open network.
The deepening collaboration focuses heavily on bridging mass public transit networks with last-mile ride-sharing services under a unified application experience.
The move will see integrated metro rail ticketing features, which are currently live across five Indian cities through the Uber application. Consumers have booked more than 10 million metro rides utilising the Uber-ONDC interoperable infrastructure, indicating strong market demand for consolidated public transit options.
Beyond passenger transit, Uber plans to co-develop enhanced supply chain and logistics features alongside ONDC to improve discovery and delivery efficiencies for businesses operating on the digital platform.
Prabhjeet Singh, President of Uber India and South Asia, said, "India has been at the forefront of building Digital Public Infrastructure that is inclusive, interoperable, and transformative at scale. Our ongoing partnership with ONDC and now this investment puts us at the heart of that innovation journey. By investing in this network, we're helping more people move, more businesses grow, and more earners thrive harnessing the power of the ONDC network.”
Adil Zainulbhai, Independent Director, ONDC, added, "ONDC is a key pillar of India’s efforts to democratise digital commerce and create a level playing field for businesses of all sizes. Uber’s investment is a strong endorsement of India’s digital public infrastructure and its potential to drive innovation, efficiency and inclusive growth."
Image only for representational purposes.
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