New Delhi, Aug 26 (IANS): Government's push for manufacturing of semiconductors in India is a much needed, long-term step, in the right direction, said SIAM President and Maruti Suzuki Managing Director & CEO Kenichi Ayukawa on Thursday.

Speaking at the 61st ACMA Annual Session, Ayukawa said: "The invitation by the government for 'Expression of Interest' for manufacturing semiconductors in India is a much needed, long-term step, in the right direction."

"I am sure global investors will take advantage of this opportunity in India. In the meantime, our partners from the component industry have to tackle the current challenge of semiconductor shortage, by deeply engaging with the chip suppliers."

Besides, Ayukawa pointed out that semiconductor shortage is not just a challenge, but also an opportunity.

"Alongside automobiles, the demand for technology-based equipment has increased manifold. Of course, semi-conductor manufacturing requires very huge investments."

"Indian automobile industry alone cannot assure full viability of such an investment in semiconductor project. Hence there is a need for consolidation across sectors."

Lately, the global semiconductor supply chain has become increasingly at risk due to several factors.

It has impacted auto industry since last year and continues to be a big challenge.