Engineering and Technology Company Bosch said the shortage of semiconductors or chips is a global reality and the ramifications of it are for both the world and India.
Soumitra Bhattacharya, MD, Bosch, reiterated what Bosch CEO Volkmar Denner said a few days ago that the shortage of chips will affect the car market and not only India could stay tight until 2022. Tier 1 suppliers like us and our competitors rely on control units supplied by tier 2 manufacturers.
While Bhattacharya agrees that the chip shortage will disrupt supply chains, the situation for CY21 will continue to be challenging. He also said the company has invested a lot of money around the world to solve the problem with manufacturers. “But we cannot wish the challenge away. At least in India, partial capacities are being met. Unlike other regions where OEMs have had to shut down, ”said Bhattachrya.
For the first time in several years, the company also saw a decline in its investment plans for fiscal year 22. The company will invest Rs 200 crore in investments during the financial year. Historically, the company’s investments have ranged from 350 to 500 rupees.
“While investments by Bosch India, the group company, are expected to be in the range of 400 to 600 billion rupees, Bosch Ltd investments will be in the range of 160 to 200 billion rupees,” said Bhattacharya. For the past two years, including this year, Bhattacharya said the company had invested 800 rupees in its Adugodi campus in Karnataka.