Amid the global chip shortage that is going to worsen with the Russia-Ukraine war, a new report has shown that the global smartphone AP (Application Processor)/SoC (System on Chip) chipset shipments grew 5 per cent (on-year) in the fourth quarter of 2021.5G smartphone SoC shipments were almost half of the total SoC shipments, according to Counterpoint Research. MediaTek led the smartphone SoC market with a share of 33 per cent in Q4.

"On account of Covid-19, sluggish rural sentiments due to crop loss because of untimely rains impacted realisations the sales of 2 wheelers and tractors which have been under pressure and both these segments are still saddled with higher inventory on the dealer front leading to sluggishness in offtake for these segments. In case of premium motorcycles demand is reasonable but chip shortage is limiting growth," said Hemal Thakkar, Director, Crisil Research.

Bloomberg News reported on Tuesday, citing sources, that the US-based chipmaker has told partners "it's not expecting the (Arm) deal to be finalised". "We continue to hold the views expressed in detail in our latest regulatory filings -- that this transaction provides an opportunity to accelerate Arm and boost competition and innovation," a Nvidia spokesperson told CNBC. The Federal Trade Commission (FTC) last month sued to block Nvidia's $40 billion acquisition of Arm from Softbank on antitrust grounds.

The worldwide shortage of chips has enticed India to take a step further and be self-reliant. The Union Cabinet on Wednesday approved  a Rs 76,000-crore incentive package to boost semiconductor and display fab manufacturing in the country. The move comes at a time when there is worldwide shortages in the supply of the critical semiconductor componen that has hit industrial production across automobiles, electronics and other technology-led sectors.