Automakers Want Aid Set Aside for Car-Grade U.S. Chip Production

Photographer: Daniel Acker/Bloomberg
Photographer: Daniel Acker/Bloomberg
Automakers want a portion of the money Congress approved for addressing the global semiconductor shortage to be reserved for vehicle-grade chips — warning of a potential 1.3 million shortfall in car and light-duty truck production in the U.S. this year.
Congress last year authorized federal spending on research and design initiatives to boost domestic chip production and create a subsidy for domestic manufacturers. But the money still needs to be included in an appropriation measure before it can be doled out.
“Given the importance of chips to current auto production and future automotive innovation, it would be regrettable if none of the funding under the CHIPS for America Act, once appropriated, was used to increase the resiliency of automotive supply chains through the construction of new facilities that produce or have the ability to produce auto-grade chips,” John Bozzella, president and chief executive officer