Semiconductor prices to stay elevated till year-end due to high demand & low supply: IESA

New Delhi, May 19 (KNN) The prices of semiconductor are likely to stay elevated till the year-end due to high demand and low supply in the Indian automobile industry, India Electronics and Semiconductor Association (IESA) said.

“Our economic nature dictates that if demand is high and supply is down, prices go up. The supply chain for semiconductors suffered a disruption because companies did not plan for it. We expect things to move in a positive direction and prices to return to normal,” said Sanjay Gupta, chairperson of the IESA.

IESA pointed out that the shortage of semiconductors has arised because the automobile companies had not expected demand to increase during the pandemic. 

“During the pandemic, people wanted private vehicles, and by the time the automotive industry realised that demand was increasing, they could not get the semiconductor slots back, and many automotive suppliers and system solution companies prioritised their fabrication slots. This resulted in huge supply chain challenges,” he said. 

As per reports, India will have its semiconductor manufacturing facility up and running by 2030. 

“There will be semiconductor footprints in the country within the next five years, but to become big like Taiwan Semiconductor Manufacturing (TSMC) it might take another five to 10 years,” said Sanjay Gupta.

The government has allocated Rs 3,000 crore in the budget for the development of the semiconductor and display manufacturing ecosystem in the country.  (KNN Bureau)