Smartphones and Automobiles are likely to improve as chip designee services

Availability of smartphones and automobiles are likely to improve as chip designers expect semiconductor supply constraints to ease from the second quarter of 2022. While availability of semiconductors for smartphones is expected to balance out over the next couple of months, those used in vehicles will see an increase in supplies toward the end of the year.

The pandemic showed us how important it is to remain connected in a hybrid environment, with the same efficiency as in an office,” Rajen Vagadia, VP and President, Qualcomm India and SAARC, told ET. “This triggered demand for better cameras, audios, phones, laptops. The supply chain had to pivot.”

With chip makers working on tailoring production to demand, optimising capacity utilisation and investing in expanding operations, availability of semiconductors is now expected to improve - both for consumer electronics and automobile manufacturers. In FY22, however, passenger vehicles makers in the country could lose about 500,000 units in sales on chip shortage, ratings agency ICRA said recently.