The Impact of Ukraine Russia War on the Semiconductor Industry in India

The Ukraine Russia War rages on, and at present there is no end in sight to this catastrophic event. Along with the loss of lives and livelihoods, the war is also impacting industries across the world for sectors such as logistics have been severely impacted. The semiconductor industry, which was already stressed due to the COVID-19 pandemic, has also been affected, and Avneet Singh Marwah, CEO at SPPL, India Brand Licensee of Blaupunkt TV recently spoke to Dataquest about the same.



DQ: How will the Ukraine Russia War impact the semiconductor industry globally?

Avneet Singh Marwah: The Ukraine Russia War has had a significant impact on the global stage. There are certain raw materials that contribute to making semiconductors that Ukraine provides, and we do anticipate turbulence in the supply of the same.



However, such disruptions show up only after 6-7 months of an event. Nevertheless, the effects are here to stay.

DQ: How far will it disrupt the supply chain of raw materials from both the countries?



Avneet Singh Marwah: Either of the two countries does not contribute heavily to the electronics industry. However, with the current situation at hand, oil prices have been affected and increased yet again, which will disrupt sectors such as logistics directly.



This has also resulted in hikes in the prices of commodities and plastic, which are touching an all-time high. The increase is between 5-10%, and it will percolate to other markets too. 

DQ: As one of the leading TV manufacturers of the country, how would you tackle the manufacturing constraints?



Avneet Singh Marwah: We have already taken premeditated steps since the crisis in prices and supplies of raw materials started ever since the pandemic began. SPPL is covered in all aspects in terms of raw materials and is covered for the next couple of quarters.



We were very mindful of our customers and did not want our audience to face the brunt of all that was going on. We are already planning big for this season and want our customers to not worry about price increases.

DQ: Would it lead to a price hike of the semiconductors?

Avneet Singh Marwah: The pandemic-infused lockdown created an even bigger market for screen-focused gadgets. This hike dwindled the supplies of semiconductors and caused a price hike in costs and logistics as well. While we will continue to see this disturbance in 2022 as well, there is some stability that the market is catching on to with respect to both supply and price.

However, as we face yet another crisis effect that is manifesting across the globe, the Ukraine Russia War, disruptions are set to erupt again. As discussed above, we will see its aftermath in a few months and not immediately.



There is a certain danger in the way markets function as soon as any kind of crisis begins. We function on speculation and not the actual scenario, while the pendulum keeps dwindling between stability and instability.

DQ: How will this affect your business and consumer behavior in the country?



Avneet Singh Marwah: Indian consumers are price-sensitive. Since we anticipated much of the price hike and disturbances that we are seeing currently, as a brand we were able to stock up well on the many essentials that our industry requires—raw materials, etc.

As mentioned above, we are planning some really new launches this season, and we are glad that our customers will not have to face any price issues. 

At the moment, our business is safe and sound, and on a daily basis we are taking calculative steps to ensure that it remains this way. We are watching the trends and any occurrences very closely and are using all the lessons we learned when COVID-19 struck first.