The Mexican Association of Automobile Manufacturers expects chip supply to return to normal this year

According to Reuters, the Mexican Automobile Manufacturers Association (AMIA) said that the global semiconductor shortage that drags down the Mexican auto industry should return to normal throughout the year, and chip supply should reach pre-epidemic levels in the second half of 2022.

Fausto Cuevas, head of AMIA, said at a news conference: "We expect semiconductor shortages to stabilize throughout the year and may return to pre-outbreak levels as we approach the second half of the year."

Amxico's auto production and exports fell year-on-year in January as the impact of the COVID-19 pandemic and semiconductor shortages hurt the auto industry, official data from last week, the seventh consecutive month of decline.

Vehicle production fell 2 percent in 2021 compared to 2020, the fourth consecutive year of declines, as semiconductor shortages in recent months have prompted automakers in Mexico and other parts of North America to implement rolling production shutdowns that have reduced production.

The AMIA previously estimated that output would not return to pre-pandemic levels until the end of 2023 or 2024.

(Proofreading/Sharon)