Global chip shortage: Phones, cars to appliances hit, till when can the semiconductor shortage last

From automobiles to smartphones to electronic appliances, all are facing a big hit due to the global shortage of semiconductors or chips.

The supply-side shortage of chips started with the pandemic, which led to the shutting down of manufacturing plants and factories across the globe. People stuck at home during the lockdown led to a surge in the demand for electronics, adding fuel to the fire.

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Here are some of the biggest incidents that have occurred due to the shortage in the last 2 or 3 months:

• The latest one being the delay in the launch of JioPhone Next developed by Asia's richest Mukesh Ambani-led Reliance in collaboration with Google
• India's largest carmaker Maruti Suzuki's production fell 8% in August
• Mahindra & Mahindra, last week, said it would have to halt production for a week due to the worsening supply situation of semiconductors.
• Most of the other automobile firms in India, including Tata Motors, Hyundai Motor India, Kia Motors, Nissan, Renault, and Honda Cars, have either already curbed production or will do so in the coming weeks.
• Maruti expects a potential loss of 40% in its output; for M&M it is 20-25%
• Input costs for the automakers have been rising with Maruti increasing prices three times this year alone
• Tata foraying into chip manufacturing

Many analysts expect the chip shortage to continue till 2023. Car makers are the worst hit around the globe.