Auto industry CEOs urge Congress to pass fast chips

Newly manufactured Ford Motor Co. 2021 F-150 pick-up trucks are in Dearborn, Michigan, US, March 29, 2021. Picture taken March 29, 2021. REUTERS / Rebecca Cook / File Photo

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WASHINGTON, June 22 (Reuters) – Major automakers and industry suppliers Wednesday urged Congress to move to a $ 52 billion subsidiary of the US semiconductor production, according to a letter from Reuters.

A persistent shortage of chips has disrupted the automotive and electronics industries, forcing some firms to scale back production.

The chief executives of General Motors, Ford Motor (FN), Chrysler-parent Stellantis (STLA.MI), Rivian Automotive (RIVN.O), Magna International (MG.TO), NXP Semiconductors (NXPI.O) and senior US leaders of Toyota Motor (7203.T), Honda Motor (7267.T), Hyundai Motor (005380.KS), Volkswagen (VOWG_p.DE), Mercedes Benz (MBGn.DE), BMW (BMWG.DE) and Nissan (7201) .T) urged Congress to act soon.

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“If the US is to remain a leader in automotive innovation, we must make the strategic, forward-looking investments needed today to enhance the capacity and resilience of our domestic and regional semiconductor supply chains,” the letter said.

The letter warned, “Currently, the auto industry is facing significant production losses from across the global semiconductor supply chain” and added, “Many automakers have been forced to halt production and cancel shifts in the United States, with serious concerns for their workers. and the communities in which they operate. “

The funding includes $ 2 billion in incentivized production of “mature node” semiconductors used in the auto industry and medical equipment, agricultural machinery and some national defense applications.

Congressional leaders met Tuesday to try to hammer out a compromise.

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer on Tuesday urged swift action and said they should have no reason to bill the bill in July.

The Senate Legislation, passed in June 2021, included $ 52 billion in chips subsidies and authorized another $ 200 billion to boost US scientific and technological innovation.

The House version, passed in February, is nearly 3,000 pages long and includes a $ 52 billion accompanying a number of trade proposals, not the Senate bill.

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Reporting by David Shepardson Editing by Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

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