21 automotive and tech industry groups urge US Congress to pass chip-funding bill amid shortage

Congress approved federal spending on initiatives to boost domestic chip production last year, but the money needs to be included in an appropriation measure

A pandemic-fuelled semiconductor shortage has hampered production of cars and consumer electronics such as computers and smartphones

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President Joe Biden is flanked by Senate Majority Leader Chuck Schumer of New York, left, and House Speaker Nancy Pelosi of California, right, after arriving on Capitol Hill in Washington on January 6, 2022. Photo: AP

Published: 11:30am, 17 Feb 2022

A group of 21 industry groups aligned with the automotive and technology sectors is calling for Congress to finalise work on a bill to fund increased domestic chip production.

Congress in 2021 authorised 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.

“It is essential Congress act swiftly to provide funding to make this law a reality,” the groups wrote in a letter to US House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy and Senate Minority Leader Mitch McConnell.

A global semiconductor shortage that traces its origins back to the beginning of the Covid-19 pandemic in the spring of 2020 has hampered US car manufacturing and increased prices for consumers. Carmakers are competing with other makers of other electronic devices affected by the shortage, such as computers and mobile phones, for chips that have remained scarce for more than a year.

“Our global competitors are investing heavily in semiconductor manufacturing and research, and continued inaction by the US risks placing our country further behind in the competition for economic growth, supply chain resilience, technology leadership, and strengthened national security,” the letter continued.

Among the signatories of the letter is the Business Roundtable, CTIA, Motor & Equipment Manufacturers Association, North America’s Building Trades Unions, USTelecom, and the Chamber of Commerce.