The FAB Challenge
Lack of semiconductor manufacturing is turning out to be the biggest hurdle in India s tryst with self-reliance in electronics. It requires out of the box thinking by government and industry
Illustration by Raj Verma
India s largest automotive component maker Bosch faced an unforeseen situation in early December - shortage of semiconductor components. The reason was surge in demand for consumer electronics globally due to work from home and rise in adoption of 5G in household appliances.
This could not have come at a more inappropriate time. Demand for automobiles was just beginning to rebound after a torrid first half of the year when production was disrupted due to lockdown in April-May. Another disruption can impair the recovery, which is what Bosch warned in a letter to market regulator Sebi. Imports of Bosch Ltd have been impacted with severe shortage of imported micro-processors (semiconductors), leading to reduced ability to deliver to the automotive
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