Chip crunch hits electronics sector

New Delhi: Semiconductor chip shortage has jolted not only the auto industry, but electronic sector as well in India, with distributors, retailers and innovation laboratories unable to procure the components in the desired quantity. Close to a year, global chip shortage has caused production challenges for smartphones, personal computers, game consoles, automobiles, and medical devices, and LED lights.

Satish Garg, owner, Esteem Semicon, a distribution company based in the national capital, says that the shortage of the components has not only hampered sales, but also caused his business to suffer.

"I've lost almost 50 per cent of my business due to the shortage of semiconductor chips. The supply issue began almost six to eight months ago, but situation is yet to see any improvement. Since the manufacturing is affected, demand for goods has also been impacted. The other issue is that we do not have an alternate manufacturer to supply semiconductors or a substitute component that may work as an alternative," Garg told Bizz Buzz.

His company distributes lighting across the country, which requires semiconductor chips. According to Garg, he has to rely on imports for 80 per cent of products he sells as only 20 per cent could be sourced from India.

But distributors are not the only section deeply affected by the production constraints. Ashutosh Sinha, Director, Techstreak Innovations Ltd., says that innovation hubs such as his are unable to carry out hardware operations due to shortage of the semiconductor chip. His company, based in Shakarpur, New Delhi, does product engineering and prepare kits related to embedded developments, involving a combination of both software and hardware for electronic devices.

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