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U.S. Senate subcommittee will hear testimony from auto industry
groups urging action to address production of "mature node"
chips.
The industry backs proposals to spend tens of billions of
dollars to boost U.S. semiconductor production and new tax
incentives to help chip companies offset costs of creating new
lines within existing facilities.
"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," John Bozzella, the
head of the Alliance for Automotive Innovation, will tell the
panel in testimony seen by Reuters.
Bozzella wrote in an April 19 letter to U.S. congressional
leaders that some of the new 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."
Ann Wilson, senior vice president at the Motor & Equipment
Manufacturers Association, will tell the Senate panel auto
suppliers are facing "a significant supply chain crisis".
Automakers have warned the shortage could result in 1.3 million
fewer vehicles built this year in the United States and disrupt
some production for at least another six months.
Last week, both Ford Motor and Stellantis announced additional
chip-related production cuts, while Volkswagen announced
production cuts in Mexico on Monday.
President Joe Biden’s proposed $2 trillion infrastructure
investment package includes $50 billion for semiconductor
production and research. It also includes another $50 billion to
create a new office at the Commerce Department to monitor
domestic industrial capacity and fund investments in the
production of critical goods.
(Reporting by David Shepardson; Editing by Edwina Gibbs)
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