Shipments of smartphones to increase in second quarter of 2022
23. June 2022Smartphone and car availability will improve as semiconductor shortages decline in the second quarter of 2022, according to chipmakers. While semiconductors for smartphones are expected to ease as early as the coming months, it will take until the end of the year for the automotive sector to have enough components. “The pandemic impressively showed us how important connectivity is for workplaces,” Rajen Vagadia, president of Qualcomm India, told the Economic Times of India. He relates his statement to the high demand of cameras, audio devices, smartphones and laptops, which have troubled the industry. Smartphones and components in most cases require BIS certification as well as TEC approval to be approved for the Indian market.
As chipmakers are currently revising their production schedules, optimizing capacity and investing in new equipment, semiconductor availability will improve this year. This applies to electronic devices and automotive manufacturers. Nevertheless, rating agency ICRA expects Indian automakers to lose 500,000 vehicles in fiscal year 2022 due to a lack of computer chips. The improved supply situation will allow automakers to equip vehicles with new features of the 5G network, which will be launched in India in fiscal 2023. “With the launch of 4G in the past, audio streaming became possible and vehicles had identical features as smartphones,” Qualcomm’s Vagadia said. “With the introduction of 5G, the connectivity of vehicles will increase further and the demand for computer chips will increase.”
The Indian semiconductor industry expects chip demand to quadruple to $100 billion by 2025 with the advent of IoT technology and the 5G network. Vagadia spoke positively about the government’s PLI incentive program for semiconductor and display manufacturers. Qualcomm Technologies is extremely optimistic about growth opportunities in India, Vagadia said. In addition to customers in the telecommunications industry, the company’s automotive business also saw growth last year. Qualcomm employs about 12,000 people in India, making it its largest location besides its headquarters in San Diego, California. The company is currently developing intelligent cockpit solutions for vehicles that automakers can benefit from due to customization. In India, Qualcomm supplies electronic components to Mahindra for its XUV700 and two-wheeler manufacturer Ola Electric.
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