Latin America and the Caribbean: Electronic Chip Market 2023

Electronic Chip Market Size in Latin America and the Caribbean

The Latin American electronic chip market reached $X in 2021, rising by 10% against the previous year. The total consumption indicated a strong expansion from 2012 to 2021: its value increased at an average annual rate of +5.6% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption decreased by -1.0% against 2019 indices. The level of consumption peaked at $X in 2019; however, from 2020 to 2021, consumption stood at a somewhat lower figure.

Electronic Chip Production in Latin America and the Caribbean

In value terms, electronic chip production amounted to $X in 2021 estimated in export price. Overall, production, however, recorded a deep downturn. The pace of growth appeared the most rapid in 2017 with an increase of 24% against the previous year. The level of production peaked at $X in 2012; however, from 2013 to 2021, production stood at a somewhat lower figure.

Electronic Chip Exports

Exports in Latin America and the Caribbean

In 2021, the amount of electronic chips exported in Latin America and the Caribbean surged to X units, rising by 83% compared with the previous year. In general, exports, however, faced a sharp shrinkage. Over the period under review, the exports hit record highs at X units in 2012; however, from 2013 to 2021, the exports stood at a somewhat lower figure.

In value terms, electronic chip exports surged to $X in 2021. Overall, exports, however, saw a abrupt shrinkage. Over the period under review, the exports attained the maximum at $X in 2013; however, from 2014 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Mexico was the largest exporting country with an export of about X units, which recorded 80% of total exports. It was distantly followed by Costa Rica (X units), mixing up a 12% share of total exports. The following exporters - Guatemala (X units) and Brazil (X units) - each resulted at a 6.7% share of total exports.

Exports from Mexico increased at an average annual rate of +2.5% from 2012 to 2021. At the same time, Brazil (+3.8%) displayed positive paces of growth. Moreover, Brazil emerged as the fastest-growing exporter exported in Latin America and the Caribbean, with a CAGR of +3.8% from 2012-2021. By contrast, Guatemala (-1.2%) and Costa Rica (-37.0%) illustrated a downward trend over the same period. While the share of Mexico (+73 p.p.), Brazil (+3.1 p.p.) and Guatemala (+2.9 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of Costa Rica (-79.1 p.p.) displayed negative dynamics.

In value terms, Mexico ($X) remains the largest electronic chip supplier in Latin America and the Caribbean, comprising 97% of total exports. The second position in the ranking was held by Brazil ($X), with a 1.9% share of total exports. It was followed by Costa Rica, with a 1.3% share.

From 2012 to 2021, the average annual rate of growth in terms of value in Mexico amounted to +9.9%. In the other countries, the average annual rates were as follows: Brazil (+5.4% per year) and Costa Rica (-49.1% per year).

Export Prices by Country

The export price in Latin America and the Caribbean stood at $X per unit in 2021, falling by -30.9% against the previous year. In general, the export price, however, recorded a temperate increase. The pace of growth appeared the most rapid in 2019 an increase of 43%. The level of export peaked at $X per unit in 2020, and then declined rapidly in the following year.

There were significant differences in the average prices amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Mexico ($X per unit), while Guatemala (less than $X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Guatemala (+9.4%), while the other leaders experienced more modest paces of growth.

Electronic Chip Imports

Imports in Latin America and the Caribbean

In 2021, purchases abroad of electronic chips decreased by -24.9% to X units, falling for the second consecutive year after three years of growth. Over the period under review, imports saw a relatively flat trend pattern. The growth pace was the most rapid in 2017 when imports increased by 12%. Over the period under review, imports attained the maximum at X units in 2019; however, from 2020 to 2021, imports failed to regain momentum.

In value terms, electronic chip imports skyrocketed to $X in 2021. The total import value increased at an average annual rate of +4.9% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports by Country

Mexico dominates imports structure, resulting at X units, which was approx. 81% of total imports in 2021. Argentina (X units) took a 7.5% share (based on physical terms) of total imports, which put it in second place, followed by Brazil (6.7%).

Mexico was also the fastest-growing in terms of the electronic chips imports, with a CAGR of +1.9% from 2012 to 2021. Argentina (-5.8%) and Brazil (-7.7%) illustrated a downward trend over the same period. While the share of Mexico (+16 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Argentina (-4.8 p.p.) and Brazil (-6.5 p.p.) displayed negative dynamics.

In value terms, Mexico ($X) constitutes the largest market for imported electronic chips in Latin America and the Caribbean, comprising 79% of total imports. The second position in the ranking was held by Brazil ($X), with a 19% share of total imports.

In Mexico, electronic chip imports expanded at an average annual rate of +7.2% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Brazil (+2.5% per year) and Argentina (-3.3% per year).

Import Prices by Country

The import price in Latin America and the Caribbean stood at $X per unit in 2021, picking up by 58% against the previous year. Import price indicated a resilient expansion from 2012 to 2021: its price increased at an average annual rate of +5.4% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Brazil ($X per unit), while Argentina ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+11.1%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform

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