MEXICO CITY, (Reuters) – A global shortage of semiconductors that has weighed heavily on Mexico’s automotive sector needs to normalize over the course of the year. In the second half 2022 chip supply should return to pre-pandemic levels, according the Mexican Automotive Industry Association.

Fausto cuevas, AMIA’s head, stated that “we expect the shortage in semiconductors to stabilize throughout this year” and suggested that they could return to levels before the end of the second semester.

According to official data, Mexico’s January auto production and exports declined from one year ago. This was the seventh consecutive monthly decrease.

Mexican carmakers could increase their use of the installed capacity by returning to more regular supplies of semiconductors.

Cuevas said, “It seems that carmakers can recover their former capacity levels as quickly as there is enough supply”

The fourth consecutive year of decline in vehicle production was 22% for 2021, compared to 2020. This is due to the shortage of semiconductors in the recent months, which prompted North American automakers, including those in Mexico, into rolling shut downs that would reduce output.

AMIA estimates that the output of AMIA will never return to its pre-pandemic level until either late 2023 or early 2024.