US-Iran War's Supply Chain Impact: EMS Industry Struggles with Component Shortages

CHENNAI: The electronic manufacturing services (EMS) industry continues to witness supply constrain six months after the US-Iran war broke out as the companies are finding it to difficult to source key components and unavailability of chemicals for semiconductor, though the industry is seeing robust demand across the sectors. During the earnings call on Thursday, India’s leading EMS player Syrma SGS Technology said that the industry is heavily impacted by the war as it faces supply shortage of key component parts and chemicals used for making PCBs. “To tackle this issue, we have taken a cautious call of treating inventories as strategic asset for the next one or two quarters and not as working capital until the geopolitical tension eases in the Gulf region. Secondly, we have created a war room to address this component issue in our company, so that whenever there is a shortage of critical parts it will be resolved sooner than later, said Jasbir Singh Gujral, MD of Syrma SGS.