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The
U.S. Commerce Department should dedicate a portion of funding in
a proposed bill to expand U.S. semiconductor production to auto
sector needs, the Alliance for Auto Innovation said in written
responses to a government-initiated review.
U.S President Joe Biden in February ordered several Federal
agency actions to address the chip crisis and is also seeking
$37 billion in funding for legislation to supercharge chip
manufacturing in the United States.
Some funding should "be used to build new capacity that will
support the auto industry and mitigate the risks to the
automotive supply chain evidenced by the current chip shortage,"
the group's chief executive, John Bozzella, wrote.
The group said the U.S. government could specify "a particular
percentage – that is reasonably based on the projected needs of
the auto industry – be allocated for facilities that will
support the production of auto grade chips in some manner."
The group represents nearly all major automakers with factories
in the United States including General Motors Co, Ford Motor Co,
Volkswagen AG, Toyota Motor Corp and Hyundai Motor Co.
Automakers have been hit particularly hard by the global chip
shortage after many cancelled orders when auto plants were idled
during the coronavirus pandemic.
When they were ready to recommence production, they found that
chipmakers were busy fulfilling orders for the consumer
electronics industry which as seen demand for premium devices -
both for work and leisure - boom as people spent more time at
home.
Most automakers have been hit by the shortage. In recent
announcements, Ford said last week it would cut output at seven
North American assembly plants, while Kia Motors said it was
cutting two days of production in Georgia.
(Reporting by David Shepardson; Editing by Edwina Gibbs)
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