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The US auto industry once again pressured Congress on the issue of chip shortages.

Published :4/29/2021 9:20:05 AM

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News on April 28th. On Tuesday, local time, major US automakers and suppliers once again put pressure on the US Congress to resolve the global shortage of semiconductor chips, which has restricted global automobile production.


According to reports, the U.S. Senate Subcommittee will listen to the recommendations of auto industry organizations that urge the government to take action to solve the problem of "mature process" chip production. At the same time, the auto industry also supports Congress’s proposal to spend tens of billions of dollars to increase US semiconductor production capacity and new tax incentives to help chip companies offset the cost of new production lines in existing facilities.

John Bozzella, head of the Automotive Innovation Alliance, said: "It is undeniable that the United States needs to expand semiconductor production capacity to meet the growing needs of the automotive industry and other economic sectors."

Bozzella wrote in a letter to the leaders of the US Congress on April 19 that the new funds should be used to build new chip production capacity to support mature process chip requirements for the automotive industry, defense, medical, and critical infrastructure.

In addition, Ann Wilson, senior vice president of the American Automobile and Equipment Manufacturers Association, will testify in the Senate that auto suppliers are facing a serious supply chain crisis.

Automakers warned that the shortage could reduce the number of vehicles produced in the United States this year by 1.3 million, and that production interruptions will continue for at least six months. Last week, Ford Motor Co. and Stalantes once again announced chip-related production cuts, and Volkswagen Mexico announced a reduction in production of some models on Monday.

It was previously reported that US President Biden’s proposed US$2 trillion infrastructure investment plan included US$50 billion in semiconductor production and research and development. It also includes another $50 billion to set up a new office in the Ministry of Commerce to monitor domestic industrial capacity and provide financing for investment in the production of key products.