Automotive industry in crisis due to global shortage of silicon chips

Global recession hits industries. Not much concern about omicron

Aurangabad, Dec 9:

The automobile industry in Aurangabad, is facing difficulties due to the global shortage of silicon chips. Hence the industries have reduced production. This has created a huge gap between supply and demand. Customers have to wait four to five months for new vehicles.

Senior vice-president of Maharashtra chamber of commerce, industry and agriculture, Umesh Dasharathi said, the shortage of chips had led to a recent trend towards automated manufacturing in every sector. As a result, the demand for chips increased globally and suddenly there was a shortage of silicon chips everywhere. The Taiwanese company owns 75 to 80 per cent of the world's chips. The company does not have enough capacity to produce chips compared to the demand. Moreover, after making billions of chips, they have to be sold in the market. So at present, no one dares to invest in this field.

But more recently, Taiwan, USA and Europe have begun to expand their chips manufacturing industry. There will be a shortage of chips till March 2022. This problem is likely to go away by the coming Diwali. So far, consumers across the country, including Aurangabad, have registered to buy two-wheelers and four-wheelers. However, all the suppliers have reduced their production capacity and have to wait for the vehicles. In Aurangabad, only Skoda and Bajaj manufacture vehicles. Sources said that both the companies were also affected by the silicon chips.

Omicron is not a concern

Corona had disrupted the entire industrial sector. Recently, it has gradually recovered, and now the new variant of the corona, Omicron, is causing concern everywhere. The industrial sector has adopted the wait and watch policy. The containers were stranded in the country where the first wave of corona struck. The industry faced major difficulties in importing raw materials and exporting products. There is a lot of speculation about omicron, so it doesn't look like it will affect the industry, said CMIA president Shivprasad Jaju.