US auto Industry Group on Monday urged the government to help as it was warned of global semiconductor deficiency could result in as many as 1.28 million fewer vehicles produced this year and interfere with production for at least six months.
America’s Department of Commerce must dedicate a portion of funding in the proposed bill to expand US semiconductor production to automatic sector needs, the Alliance for Automatic Innovation said in a written response to the review began by the government. President U.S Joe Biden in February ordered several acts to overcome the chip crisis and is also seeking $37 billion in funding for legislation for the supercharge chip manufacturing in the United States.
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Some funds should be “used to build new capabilities that will support the automotive industry and reduce the risk of the automotive supply chain as evidenced by the lack of chip today,” said chief executive of the group, John Bozzella, wrote. The group said the US government could determine “a certain percentage – which is fairly based on the projected needs of the automotive industry – allocated to facilities that will support automatic class chip production in a certain way.”
This group represents almost all major car makers with factories in the US, including General Motors, Ford Motor, Volkswagen AG, Toyota Motor, and Hyundai Motor Co. Automobile sector has been hit very difficult with a shortage of global chips after many orders canceled when auto plants were idled during the pandemic outbreak.
When they were ready to restart production, they realized that chip makers were busy meeting the customer electronics industry orders such as those seen requests for premium devices – both for work and recreation – booming as consumers spent more time at home. Most carmakers have been affected. In the recent announcement, Ford said last week that it would cut output in seven assembly plants across North Korea, while Kia Motors said it cut two days of production in Georgia.
