Car manufacturers in the United States have asked Congress for more assistance in dealing with the shortage of semiconductors.
Speaking with a U.S. Senate subcommittee, the head of the Alliance of Automotive Innovation, John Bozzella, said that the nation must expand local production of semiconductors.
“There is an undeniable need to expand semiconductor capacity in the U.S. to meet the growing demand within the auto industry, as well as other sectors across the economy,” he said, adding that funding should be used to build new chip capacity that “will support the auto industry, as well as other sectors that rely on mature nodes – including defense, medical, and critical infrastructure.”
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Auto News notes that the industry is backing proposals to spend tens of billions of dollars to boost U.S. semiconductor production and tax incentives that will help chip companies offset the costs of establishing new lines within existing facilities.
Senior vice president at the Motor & Equipment Manufacturers Association, Ann Wilson, added that automotive suppliers are currently facing “a significant supply chain crisis.”
Automakers have warned the government that the chip shortage could lead to 1.3 million fewer vehicles being built in the U.S. this year. They have also suggested that it could disrupt some production for another six months.
A $2 trillion infrastructure investment package recently proposed by President Joe Biden includes $50 billion for semiconductor production and research and another $50 billion that will create a new office at the Commerce Department to monitor local industrial capacity and provide funding into the production of crucial goods.
