OEM Group Wants Action on Semiconductor Shortage

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April 7, 2021—The Alliance for Auto Innovation urged the government to dedicate a portion of funding in a proposed bill to expand U.S. semiconductor production, Reuters reported. 

The industry group warned the shortage could result in 1.28 million fewer vehicles built this year and disrupt production for another six months. 

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.

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 Alliance for Auto Innovation 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.

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