AgenciesNew Delhi: MediaTek has assured the Indian government that it will speedily resolve the severe chipset shortage faced by domestic smartphone manufacturers.
Days after India reached out to the Taiwanese company on the matter, which had brought production by Lava and Micromax close to a halt, MediaTek chairman MK Tsai responded in a letter promising to improve supplies.
“MediaTek’s Chairman MK Tsai has communicated that it was working towards ramping up its supply to Indian players, but outlined a global shortage of components,” said a person familiar with the matter. MediaTek confirmed the communication to ET.
The company in its communication has highlighted that it has been working towards the ‘Make in India’ initiative and reiterated its commitment towards fostering the Indian ecosystem.
The shortage of chipsets had threatened to upset the ability of Indian smartphone manufacturers to meet their output and other targets under the production-linked incentive scheme for the first year.
The manufacturers said while the supply of chipsets has increased, it is still short of their requirements.
“It has improved, but there is still a long way to go,” an executive at an Indian smartphone maker told ET on condition of anonymity.
MediaTek in a response to ET’s query said the global semiconductor industry and ecosystem had experienced shortages, mainly from supply-chain disruptions due to Covid-19. The acceleration of global 5G rollouts was also a contributing factor.
As reported by ET earlier this month, bulk orders placed by Chinese smartphone maker Huawei to circumvent a ban imposed by the US and the global pandemic had crippled the supply of essential components, including chipsets, to smartphone makers.
MediaTek has previously denied allegations that Indian smartphone makers faced a greater shortage than their Chinese counterparts.
Days after India reached out to the Taiwanese company on the matter, which had brought production by Lava and Micromax close to a halt, MediaTek chairman MK Tsai responded in a letter promising to improve supplies.
“MediaTek’s Chairman MK Tsai has communicated that it was working towards ramping up its supply to Indian players, but outlined a global shortage of components,” said a person familiar with the matter. MediaTek confirmed the communication to ET.
The company in its communication has highlighted that it has been working towards the ‘Make in India’ initiative and reiterated its commitment towards fostering the Indian ecosystem.
The shortage of chipsets had threatened to upset the ability of Indian smartphone manufacturers to meet their output and other targets under the production-linked incentive scheme for the first year.
The manufacturers said while the supply of chipsets has increased, it is still short of their requirements.
“It has improved, but there is still a long way to go,” an executive at an Indian smartphone maker told ET on condition of anonymity.
MediaTek in a response to ET’s query said the global semiconductor industry and ecosystem had experienced shortages, mainly from supply-chain disruptions due to Covid-19. The acceleration of global 5G rollouts was also a contributing factor.
As reported by ET earlier this month, bulk orders placed by Chinese smartphone maker Huawei to circumvent a ban imposed by the US and the global pandemic had crippled the supply of essential components, including chipsets, to smartphone makers.
MediaTek has previously denied allegations that Indian smartphone makers faced a greater shortage than their Chinese counterparts.
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