Semiconductor shortage could be a big opportunity for domestic automotive components: head of SIAM

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The semiconductor shortage is a big challenge for the auto industry right now, but the situation could also prove to be a big opportunity for the domestic auto component manufacturing industry, SIAM president said on Thursday. , Kenichi Ayukawa.

Speaking at the annual session of the Automobile Component Manufacturers Association of India (ACMA), Ayukawa, who is also the Managing Director and CEO of

India said the demand for technology-based equipment has multiplied in various sectors alongside the automotive segment.

“The challenge of COVID-19 continues globally. Different regions are affected at different times. Although the global supply chain is already very complex, such disruptions and uncertainties further add to the challenge. Therefore, our preparation must keep pace with the increasing challenges, ”Ayukawa noted.

The global semiconductor supply chain has become increasingly threatened due to several factors and this has impacted the domestic auto industry since last year and continues to be a big challenge, a- he added.

“While the semiconductor shortage appears to be a challenge, it also offers an opportunity. Of course, the manufacture of semiconductors requires very large investments. India’s auto industry alone cannot ensure the full viability of such an investment in semiconductor projects. is a need for consolidation in all sectors, ”said Ayukawa.

In the face of this critical challenge, the government is taking little long-term action, he said.

“Inviting the government to show interest in semiconductor manufacturing in India is a much needed long-term step in the right direction. I am sure that global investors will take advantage of this opportunity in India, ”Ayukawa noted.

In the meantime, the domestic component industry is expected to rise to the current challenge of semiconductor shortage, engaging deeply with chip suppliers, he added.

Semiconductors are silicon chips that perform control and memory functions in products ranging from automobiles, computers and cell phones to a variety of other electronic items.

The use of semiconductors in the automotive industry has increased worldwide in recent times with new models featuring more and more electronic features such as Bluetooth connectivity and driver assistance systems, navigation and electric hybrids.

Regarding the government’s Aatmanirbhar mission, the industry leader said that by aligning with the government, the Company of Indian Automobile Manufacturers (SIAM) and ACMA have jointly developed a localization roadmap for automobile industry.

“This roadmap details key components across segments and the corresponding localization opportunity. Expect support from every industry member in this initiative to make India Aatmanirbhar,” Ayukawa said.

Such an initiative could only succeed with the full support of the government, he noted.

“We would jointly approach the government to seek support for this road map,” Ayukawa said.

Addressing the development of new age technologies, he said that around the world, the focus is on reducing carbon emissions.

“As a responsible industry, it is our duty to get as close as possible to Carbon Net Zero with local manufacture. For that, we need to develop several alternative powertrain technologies, ”Ayukawa noted.

While praising the support and encouragement from different government departments on multiple technology solutions, including electric mobility, CNG, LNG, biogas and ethanol, he urged the auto components industry to strengthen its focus. , its investments, research and development on all of these powertrain technologies. .

“I am sure that only the combination of all these technologies will help us move closer to Carbon Net-Zero. Many of these technologies are new to the industry and have their own viability and infrastructure challenges. While our talented engineers are working on these solutions, we will continue to seek advice and support from the government, ”Ayukawa said.


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