Auto trade CEOs urge Congress to rapidly move chips funding

Auto trade CEOs urge Congress to rapidly move 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 Cook dinner/File Photograph

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WASHINGTON, June 22 (Reuters) – Main automakers and trade suppliers on Wednesday urged Congress to maneuver rapidly to move $52 billion in subsidies for U.S. semiconductor manufacturing, in accordance with a letter seen by Reuters.

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

The chief executives of Common 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 at present obligatory to boost the capability and resilience of our home and regional semiconductor provide chains,” the letter mentioned.

The letter warned “at the moment, the auto trade is dealing with substantial manufacturing losses stemming from capability challenges throughout the worldwide semiconductor provide chain” and added “quite a few automakers have been pressured to halt manufacturing and cancel shifts in the USA, with severe penalties for his or her employees and the communities by which they function.”

The funding consists of $2 billion to incentivize manufacturing of “mature node” semiconductors utilized by the auto trade and in medical units, agricultural equipment and a few nationwide protection functions.

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 cause the invoice mustn’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 almost 3,000 pages lengthy and consists of the $52 billion together with plenty of commerce proposals not within the Senate invoice.

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Reporting by David Shepardson
Modifying by Nick Zieminski

Our Requirements: The Thomson Reuters Belief Ideas.

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