Auto industry CEOs urge Congress to quickly pass chips funding
22/06/2022 13:30
By David Shepardson
WASHINGTON, June 22 (Reuters) - Major automakers and
industry suppliers on Wednesday urged Congress to move quickly
to pass $52 billion in subsidies for U.S. semiconductor
production, according to a letter seen by 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 F.N ,
Chrysler-parent Stellantis STLA.MI , Rivian Automotive
RIVN.O , Magna International MG.TO , NXP Semiconductors
NXPI.O and senior U.S. 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.
"If the U.S. is to remain a leader in automotive innovation,
we must make the strategic, forward-looking investments today
necessary 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
substantial production losses stemming from capacity challenges
across the global semiconductor supply chain" and added
"numerous automakers have been forced to halt production and
cancel shifts in the United States, with serious consequences
for their workers and the communities in which they operate."
The funding includes $2 billion to incentivize production of
"mature node" semiconductors used by the auto industry and in
medical devices, 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 believed
there was no reason the bill should not through Congress in
July.
The Senate legislation, passed in June 2021, included $52
billion for chips subsidies and authorized another $200 billion
to boost U.S. scientific and technological innovation to compete
with China.
The House version, passed in February, is nearly 3,000 pages
long and includes the $52 billion along with a number of trade
proposals not in the Senate bill.
(Reporting by David Shepardson
Editing by Nick Zieminski)
((David.Shepardson@thomsonreuters.com; 2028988324;))