Automotive Chip Shortage Expected to End in Mid-2021

Photo: Quest Global


A global shortage of a semiconductor chips that has plagued automakers and put the brakes on North American vehicle rollouts since late 2020, could end by mid-year, but will still cause a drop in automotive production, the president of Mexico’s National Auto Parts Industry (INA) Oscar Albin said Monday, March 8.

During a virtual press conference, Albin said the global scarcity of chips could lead to 264,186 fewer vehicles being produced in North America this year.

“We believe this problem … will end by the middle of the year, and in July, we will begin to resume our production capacity at 100 percent,” Albin told reporters.

The North American region, composed of Canada, the United States and Mexico,  could produce some 16.2 million vehicles this year, according to Albin.

The INA president described the lack of chips “as a problem, but not a crisis,” given its low impact.

Around 150 different models of cars are produced in the region, of which 47 have been affected by the shortage, he said.

Worldwide, chip shortages were largely aggravated this year by the covid-19 pandemic and lockdown measures imposed to prevent its spread.

…March 10, 2021

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