Chip woes stretch planning cycles: Ericsson India MD Nitin Bansal
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Ericsson India, a key player in global telecom infrastructure, is drastically extending its operational planning horizons from the standard 18-36 months to an unprecedented three to five years. This strategic pivot, revealed by MD Nitin Bansal on June 14, 2026, is a direct response to persistent semiconductor shortages, exponentially rising component costs, and broad supply chain uncertainties exacerbated by geopolitical factors, including the West Asian conflict. The move underscores a profound shift in how major tech firms are navigating a volatile global manufacturing landscape, with long-term forecasting becoming paramount to ensure continuity. This extended foresight reflects a turbulent global semiconductor market, projected to hit $975 billion in 2026, yet marked by a stark divergence where high-value AI chips command half the revenue but less than 0.2% of unit volume. Ericsson's CEO Börje Ekholm previously highlighted increasing input costs, especially in semiconductors, driven by surging AI demand and fierce competition for advanced 3nm manufacturing capacity. While Ericsson's India manufacturing operations remain undisrupted, the broader industry faces stretched delivery timelines—some exceeding 220 days—forcing telecom operators to hoard strategic spare stock and prolong asset lifecycles. Looking ahead, Ericsson is doubling down on building a more resilient, diversified supply chain, as evidenced by its 2025 expansion of Application-Specific Integrated Circuit (ASIC) R&D in Bengaluru to bolster India's semiconductor ecosystem. This focus on internal design capabilities and long-term strategic procurement is critical as India's ambitious 5G network rollout shifts from mere coverage to capacity and densification. The coming months will reveal if these proactive measures can effectively insulate Ericsson from the ongoing supply shocks and allow it to maintain its aggressive 5G deployment schedules in one of the world's most rapidly expanding telecom markets.