InvestorQ : Is the global shortage of chips likely to impact India in a big way?
prachi Patwardhan made post

Is the global shortage of chips likely to impact India in a big way?

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sara Kunju answered.
3 weeks ago
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Firstly, remember that the chip shortage is not going to go away any time soon. The pandemic lag effect and higher use of chips in every product is indication that demand supply gap will widen till fresh capacity comes up. It could take at least 3-4 years. US companies stopped selling inputs to SMI of China after Trump notified a ban on supply of inputs to SMI. Biden is not changing it and that wipes 10% of supply.

Global auto could fall by $60 billion due to shortage of chips and impact green car transition of Indian autos. India plans to make billions of dollars-worth of mobile phones, routers, networking products, set-top boxes and IOT products under Atma Nirbhar Bharat project. These are chip-heavy products and the shortage could have big impact on supply chains.

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