Semiconductor shortage dents Mexican auto assembly lines

Automakers most affected by semiconductor shortages were General Motors, Stellantis, Volkswagen

The ongoing shortage of semiconductor chips has affected the production of around 800,000 vehicles across the U.S., Canada and Mexico. (Photo: GM)

A shortage of semiconductors affected the assembly of 18% of vehicles in Mexico, almost 136,000 units between January and April, according to figures from the National Autoparts Industry Association (INA).

The main semiconductor makers in Taiwan export first to Asia and then to Europe, then North America, according to Alberto Bustamante, INA’s director of foreign trade.

“North America and Europe had the most impact from the chip shortage, followed by China and Japan,” Bustamante said during a press conference Monday. “Semiconductor production is concentrated in Asia and the priority is Asia.”

Bustamante also said Asian chip manufacturers prioritize other industries before sending parts to automakers.

“The chip plants that are located in Asia, specifically Taiwan, only 5% of what they produce is sent to the automotive sector. It is very low — they give priority to other sectors such as electronics, computer systems, cellphones and others,” Bustamante said.

The Mexican automotive parts industry billed $78.4 billion in 2020 compared to $97.8 billion in 2019. From January through April of this year, Mexican auto parts makers billed $13.4 billion.

The automakers most affected by the lack of chips in North America were General Motors, Stellantis, Volkswagen, Nissan, Honda, Ford, Toyota and Mazda.

The ongoing shortage of semiconductor chips has affected the production of around 800,000 vehicles across the U.S., Canada and Mexico. In the U.S., 478,197 vehicles have been affected by chip shortages, Canada 154,511 and Mexico 135,845.

Automakers with factories in Mexico most affected from January to April are:

— General Motors 39,101 units.

— Stellantis 36,457.

— Volkswagen 25,381.

— Nissan 13,306. 

— Honda 8,663.

— Ford 8,370.

— Toyota 2,926.

— Mazda 1,641.

Mexico could see auto parts production worth $93.9 billion in 2021, Bustamante said.

“We expect a recovery from the second quarter of this year, when we believe that the issue of semiconductors will have a reaction in terms of the recovery of the manufacture of auto parts and vehicles,” Bustamante said.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com