Auto {industry} CEOs urge Congress to rapidly go chips funding

Newly manufactured Ford Motor Co. 2021 F-150 pick-up vans are seen ready for lacking elements in Dearborn, Michigan, U.S., March 29, 2021. Image taken March 29, 2021. REUTERS/Rebecca Prepare dinner/File Picture

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WASHINGTON, June 22 (Reuters) – Main automakers and {industry} suppliers on Wednesday urged Congress to maneuver rapidly to go $52 billion in subsidies for U.S. semiconductor manufacturing, in response to a letter seen by Reuters.

A persistent scarcity of chips has disrupted the automotive and electronics industries, forcing some corporations to reduce manufacturing.

The chief executives of Normal Motors, Ford Motor (F.N), Chrysler-parent Stellantis (STLA.MI), Rivian Automotive (RIVN.O), Magna Worldwide (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 behave quickly.

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“If the U.S. is to stay a pacesetter in automotive innovation, we should make the strategic, forward-looking investments as we speak needed to reinforce the capability and resilience of our home and regional semiconductor provide chains,” the letter mentioned.

The letter warned “at present, the auto {industry} is going through substantial manufacturing losses stemming from capability challenges throughout the worldwide semiconductor provide chain” and added “quite a few automakers have been compelled to halt manufacturing and cancel shifts in the US, with critical penalties for his or her employees and the communities during which they function.”

The funding contains $2 billion to incentivize manufacturing of “mature node” semiconductors utilized by the auto {industry} and in medical gadgets, agricultural equipment and a few nationwide protection purposes.

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

Home Speaker Nancy Pelosi and Senate Majority Chief Chuck Schumer on Tuesday urged swift motion and mentioned they believed there was no motive the invoice shouldn’t via Congress in July.

The Senate laws, handed in June 2021, included $52 billion for chips subsidies and licensed one other $200 billion to spice up U.S. scientific and technological innovation to compete with China.

The Home model, handed in February, is sort of 3,000 pages lengthy and contains the $52 billion together with quite a few commerce proposals not within the Senate invoice.

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Reporting by David Shepardson
Enhancing by Nick Zieminski

Our Requirements: The Thomson Reuters Belief Rules.

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