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Or cause the auto industry to suspend production for 6 months, the United States plans to legislate to solve the chip crisis

by:Yisheng      2021-06-14

Recently, a U.S. automobile industry organization stated that the global semiconductor shortage may result in a reduction of 1.28 million vehicles in the United States this year, or even a six-month suspension of production. In order to solve the impact of the shortage of chips on the automotive industry, the United States has prepared legislation to promote semiconductor production and supply.


Economic Daily News-China Economic Net Comprehensive Foreign News Report Recently, the US government stated that it is preparing to legislate to promote semiconductor production and supply in order to solve the problem of chip shortages in the production of a range of products from automobiles to computers.





In response, White House officials said that the White House is scheduled to hold an online summit on this issue next Monday (April 12). In addition to some White House officials, the meeting will also invite executives from American auto companies such as Ford CEO Jim Farley and General Motors CEO Mary Barra to participate.


The reason for inviting heads of many car companies to participate is that the shortage of chips has an expanding impact on car production. On Monday (April 5) local time, a U.S. automobile industry organization called on the government to provide assistance, such as funding to increase the production of automotive chips; and said that the global semiconductor shortage may lead to a reduction of 1.28 million vehicles in the United States this year. Even the discontinuation of production for up to 6 months.


In February of this year, the US government also ordered federal agencies to take action to resolve the chip crisis, and is currently seeking approximately US$37 billion in funding and drafting legislation to enhance US chip manufacturing.


In retrospect, the “core shortage” of the auto industry is closely related to the new crown epidemic that has swept the world. During the worst period of the epidemic, automakers stopped production and cancelled previous chip orders, causing chipmakers to switch to producing other chips. When the auto industry gradually recovered, the production of auto chips could not keep up in time.


But in this regard, industries and enterprises such as broadband Internet, mobile phones and cable television have called on the White House to remain neutral in solving the problem of chip shortages.


(U.S.) National Cable Television Association (NCTA) said in a comment to the US Department of Commerce this week that suppliers are facing a shortage of chips, causing delays in the delivery of some cable boxes, as well as receiving network switches and routers. And server delays. It also said that semiconductor shortages and the resulting delays in product production will affect the broadband and cable television industries hundreds of millions of dollars this year.


Boeing Co., the aircraft manufacturer, said, 'The main risk facing the semiconductor supply chain is the lack of key domestic manufacturing capabilities.'

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