Disruption in the Auto Industry by

Semiconductors Chip
The invention of the transistor in 1947 by John Bardeen, Walter H. Brattain, and William B. Shockley
of the Bell research staff provided the first of a series of new devices with remarkable potential for
expanding the utility of electronic equipment (see photograph). Transistors, along with such
subsequent developments as integrated circuits, are made of crystalline solid materials called
semiconductors.

Now a days you can find the use of the Semiconductors to be invariably. IN computer’s central
processing unit (CPU), mobile phone, Smart phone, Video games, in the 1Gbit DRAM as well as
64kbit DRAM, Clocks, Automobiles.

Dominance of Semiconductors Chips In the Auto mobile Industry.

If we consider only the auto industry then you fins the huge dependency of the Auto Industry on the
Semiconductors chips. Automotive semiconductor ICs with different functionalities are used in
various automotive products, like navigation control, infotainment systems, and collision detection
systems. The electrification and automation of automobiles have led to increased demand in
semiconductor wafers. The modern car contains features like cell phone integration, heads-up
displays, autonomous driving aids, comfort, and performance.

Rising Demand for Advanced Safety and Comfort Systems to Influence the Growth of
the Market

Owing to rising demand for safety features designed to avoid collisions and accidents by offered
technologies that alert the driver to potential problems and to avoid collisions by implementing
safeguards and taking over control of the vehicle, ADAS (Advanced Driver Assistance Systems) sales
are expected to flourish in the future. Semiconductors find their application in ADAS to enhance its
functionality.
 Asia-Pacific to Witness Highest Growth Rate.

 The growth of the electric vehicle market in the region is associated majorly with the
production of the electric motors for automotive applications in countries like India and
China. According to the CAAM, in 2019, The People's Republic of China remained the
world's largest electric car market, followed by Europe and the United States. In 2019,
around 972,000 battery electric vehicles were sold, and 232,000 plug-in hybrid electric
vehicles were sold in China. The Indian electric vehicle market will, however, eventually
catch up to China due to the growing local economy, which is partly driven by the national
economic transformation program called "Make in India. The ever increasing government
regulations in favour of the electric vehicles market globally is also a significant factor for
market growth over the forecast period. For instance, in India, according to the NITI Aayog
projected umber of two-wheeler electric vehicles in 2020 was 7.35 million, which is
expected to grow to 26.52 million in 2030.
 Due to trade war among the USA and China, the US government is planning to increase
tariffs up to 25% on vehicles and car parts imported from China. China is the second biggest
exporter of components to the United States, after Mexico. The United States is one of the
largest auto markets in the world, and such tariffs will likely affect the automotive sector. As
per the World Trade Organization, the conflict between these countries will directly affect
3% of the global trade and 8% of the automotive industry. Such situations are expected to
have an impact on the automotive semiconductor market in the region.

To understand geography trends of the Growth of Semi-Conductors Chips

Global Shortage of Semiconductors Chips Cause great Disruption in the Auto Industry

Automobile wholesales in India declined 11 per cent year-on-year in August, as the

semiconductor shortage hit production processes across the industry, SIAM said

According to the latest data by the Society of Indian Automobile Manufacturers (SIAM),
two-wheeler dispatches from OEMs to dealers declined last month while passenger vehicle
and three-wheeler wholesales witnessed an increase over August 2020.

According to the latest data by the Society of Indian Automobile Manufacturers (SIAM),
two-wheeler dispatches from OEMs to dealers declined last month while passenger vehicle
and three-wheeler wholesales witnessed an increase over August 2020

Mahindra & Mahindra's Automotive Division continues to face supply shortages of

semiconductors, which has got further accentuated due to Covid lockdowns in some parts of
the world. Consequently the company will be observing ‘No Production Days’ of around 7
days in its Automotive Division plants in the month of September, 2021, which is estimated
to result in reduction in Production Volumes of the Automotive Division in September, 2021
by 20-25%, the company said in a statement to BSE today.

India’s largest carmaker Maruti Suzuki said production across the company’s
manufacturing facilities in Haryana and at Suzuki Motor Gujarat (SMG) is likely to be 40%
of normal levels in September due to shortage in the supply of semi-conductors. n a filing to
the bourses the company said owing to a supply constraint of electronic components due to
the semiconductor shortage situation, the company is expecting an adverse impact on vehicle
production in the month of September in both Haryana and its contract manufacturing
company, Suzuki Motor Gujarat Pvt. Ltd. (SMG) in Gujarat.

For a production shortfall of every 10,000 units, the company loses revenues of about Rs 500
crore. The lower production in September may hurt the company’s ability to fill channel
inventory ahead of the festive season.

The world leader in silicon innovation develops processor technologies and supports global
initiatives. SK Hynix: Memory Semiconductor Company from South Korea, supplier of dynamic
random - access memory (DRAM) chips and flash memory chips. TSMC (Taiwan Semiconductor):
Leading Wafer Manufacturer- because of the interruption of the Pandemic they asserted to close
the Production on the time of covid-19, but when the global market open then on that time
shortage of the man force (responsible for the production and operation of the organization) ,
cause the inadequate production of the Semiconductors.

Lower Man power Cause the Cut in the production Demand High

Price of the Semiconductors Rise