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A US auto industry organization is pleading with the government for assistance, warning that a global semiconductor shortage could result in 1.28 million fewer vehicles being produced this year, causing production to be disrupted for another six months.

The Alliance for Auto Innovation said in written responses to a government-initiated review that the US Commerce Department should devote a portion of funding in a proposed bill to increase US semiconductor production to meet auto sector needs.


In February, US President Joe Biden directed several federal agencies to take steps to resolve the chip crisis, and he is also seeking $37 billion in funding for legislation to boost chip production in the US.

According to the group’s Chief Executive John Bozzella, some funds can be used to “develop new capacity that will help the car industry and mitigate the risks to the automotive supply chain demonstrated by the current chip shortage.”

According to the community, the US government could assign “a specific percentage – that is fairly focused on the projected needs of the auto industry – to facilities that will support the development of auto-grade chips in some way.”

GM, Ford, Volkswagen AG, Toyota Motor Corp., and Hyundai Motor Co. are among the nearly all major automakers with factories in the United States represented by the company.


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