Semiconductor shortage a big opportunity for component industry: Ayukawa

Our Bureau. New Delhi | Updated on August 26, 2021

Kenichi Ayukawa , President SIAM

Semiconductors usage has gone up globally, with new auto models coming up with more and more electronic features.

The semiconductor shortage -- though a big challenge-- can be turned into big opportunity for the component manufacturing industry, Kenichi Ayukawa, President, Society of Automobile Manufacturers (SIAM) said on Thursday.

Speaking at the annual convention of the Automotive Component Manufacturers Association of India (ACMA), he said the demand for the technology-based equipment has increased manifold in various sectors alongside the automotive segment.

"The challenge of Covid-19 continues globally, and different regions are being impacted at different times. While the global supply chain is already very complex, such disruptions and uncertainties further add to the challenge. Hence our preparation has to keep pace with the growing challenges,” Ayukawa said.

The global semiconductor supply chain has become increasingly at risk due to several factors, and it has impacted the domestic auto industry since last year and continues to be a big challenge, he noted.

The usage of semiconductors in the auto industry has gone up globally recently in recent times with new models coming up with more and more electronic features such as bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.

Components manufacturing

On manufacturing such components in India, Ayukawa said, “The invitation by the government for expression of Interest for manufacturing semi-conductors in India is a much needed, long-term step, in the right direction. I am sure global investors will take advantage of this opportunity in India.”

He added that while there are support and encouragement from different Ministries on multiple technology solutions, including e-mobility, CNG, LNG, Bio-gas and Ethanol, there is also a need for the auto component industry to enhance its focus, investments, research and development on all such powertrain technologies.

“As a responsible industry, it is our duty to move as close as possible to Carbon Net Zero with local manufacturing. For this, we have to develop multiple alternate powertrain technologies," Ayukawa said.

Published on August 26, 2021

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