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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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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China’s WeRide has announced that at the Wuhu round of the Second China Urban Intelligent Driving Competition, the Chery Exeed Sterra ET, powered by the WeRide WRD 3.0 (jointly developed with Bosch), claimed first place with a lead of over 10 points.

As the first publicly traded Robotaxi company, WeRide operates in over 40 cities across 12 countries. It holds autonomous driving permits in eight major markets, including the UAE, Singapore and the US, providing L2 to L4 solutions across the mobility, logistics and sanitation sectors.

This win marks the first time in the competition's history that a single solution has achieved four consecutive championships, following previous victories in Taizhou, Wenzhou and Jinhua.

The WRD 3.0 system utilises a one-stage end-to-end ADAS solution designed to handle complex urban environments. Its performance is driven by two key internal technologies:

• GENESIS Simulation World Model: A proprietary platform that uses generative AI to reproduce rare ‘long-tail’ scenarios, bridging the gap between virtual training and real-world application.
• L4 Driverless Data Integration: The system leverages large-scale data from WeRide's fully driverless operations to refine perception and planning in dense traffic, such as street markets and mixed-use urban roads.

WeRide has transitioned WRD 3.0 from an algorithmic concept to a production-ready system, achieving hardware-software decoupling that allows it to run on different computing tiers.

With the launch of the Aion N60, WeRide has become the first autonomous driving provider to achieve mass production of one-stage end-to-end technology on both Nvidia Drive and Qualcomm Snapdragon platforms.

While strengthening its presence in China with brands like GAC Trumpchi and Hyptec, WeRide is expanding its international footprint. Through partnerships with Tiggo, Omoda and JAECOO, the company aims to export its intelligent driving solutions to global markets.

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South Korea-based Stradvision, a company specialising in AI-based vision perception technology, has been selected by a global commercial vehicle manufacturer to deploy its SVNet software across its Indian vehicle lineup.

The programme focuses on fleet-scale deployment of Advanced Driver Assistance Systems (ADAS) in a market where perception software must balance technical reliability with cost-efficiency.

The company stated that the Indian commercial vehicle sector requires ADAS solutions capable of operating on resource-constrained hardware while maintaining performance in high-density traffic.

SVNet is engineered to detect and classify objects in mixed-traffic environments, including two-wheelers, three-wheelers and pedestrians. This software architecture allows the OEM to implement functions such as automatic emergency braking, forward collision warning and lane departure warning across various models using a single software stack.

The deployment is structured to allow the manufacturer to standardise its perception platform while adjusting for model-specific hardware.

Till date, Stradvision has deployed approximately 5 million units of SVNet globally, providing the production maturity required for high-volume commercial vehicle programmes. This project indicates a shift in the automotive industry towards perception solutions that prioritises scalability and operational efficiency across diverse market conditions.

Philip Vidal, CBO, Stradvision, said, "India's commercial vehicle segment is one of the most consequential ADAS markets opening right now. The scale of the fleet, the complexity of the traffic environment, and the cost requirements make it a genuine test of whether perception software can perform where it matters most. SVNet was built for exactly this kind of deployment, and this program is a strong validation of that."

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Einride AB, the freight technology company, has appointed General (Ret.) Keith B. Alexander to its Board of Directors. The appointment coincides with the formal establishment of a dedicated defence business aimed at providing autonomous driving capabilities to military organisations globally.

General Alexander, a current member of the Amazon Board of Directors, previously served as the Director of the U.S. National Security Agency (NSA) and was the Founding Commander of the U.S. Cyber Command.

The move into the defence sector follows the completion of autonomous pilot contracts with a European NATO-allied organisation. Einride intends to utilise its vehicle-agnostic autonomous system, the Einride Driver, which can be integrated into new vehicle platforms or retrofitted onto existing fleets.

This technology licensing model operates alongside the company’s Freight-Capacity-as-a-Service offering, which manages electric heavy-duty fleets through AI optimisation software and charging infrastructure.

The company currently operates in the U.S., Europe and the Middle East, serving more than 30 enterprise customers. Einride reports approximately USD 92 million in expected annual recurring revenue from signed contracts. The firm is also progressing toward a public listing through a proposed business combination with Legato Merger Corp. III, expected to conclude during the first half of 2026.

General Keith B. Alexander, said, "Autonomous systems operating in defence environments face a distinct threat landscape, where adversaries probe for vulnerabilities in communication, navigation, and control. What brought me to Einride is its strong operational foundation, proven safety record and real operational experience. My role is helping ensure Einride's systems meet the standards required by NATO-allied and U.S. defence organisations and scale from pilots to full programs."

Robert Falck, Chairman of Einride's Board of Directors, said, "General Alexander has spent decades operating at the intersection of technology, security, and high-stakes decision-making. As Einride continues to expand its offering to the defence sectors, his knowledge and experiences are exactly what we need in the boardroom."

Roozbeh Charli, CEO, Einride, added, “Having validated our technology in a defence context, we're now moving with intent: recruiting specialised talent, developing defence-specific expertise, and bringing in leadership with deep domain knowledge. Appointing General Alexander to our Board of Directors is one concrete example of that, his experience directly strengthening our strategic direction in this space.”

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